The company chapter two summary
Imperialists and speculators
During the 16 and 17 centuries the emergence of chartered companies
became more evident. They were seen as “ the most remarkable business
organizations”. Examples are Hudson’s bay, Muscovy, Levant.
Chartered companies represented a combined effort by governments and
merchants to grab the riches of the new worlds opened up by columns.
They were recipients of royal charters that gave them the right to trade
with this or that part of the world.
Chartered companies drew on two ideas from the middle ages. These
o Idea of offering shares that can be sold on the open market. (Dates
back to the thirteenth century)
o Limited liability. Colonization was so risky that the only way to
raise large sums of money from investors was to protect them.
First chartered joint company was the Muscovy Company. It was given its
charter in 1555.
The honorable company
East India Company was more than just a modern company