Period four- joint stock company

Joint-stock company is a business entity where different stocks can be bought and owed by shareholders. Each shareholder owns company stock in proportion, evidenced by his or her shares (certificates of ownership). Back in the 1700s, joint-stock companies were established by powerful nations in developing countries for the exploitation of trade. Originally, the company was economic based only but they eventually became more influential and began to involve in the country’s politics.

The emergence of joint stock company had significant impact during the period. Among the companies, the British East India Company was the most influential one during the 18th century. It was sponsored by the British government and were granted spice trade monopoly in the East Indies. As the company dilated, it started to involved in India’s politics and acted as an agent of British imperialism in India from the early 18th century to the mid-19th century.

Nowadays, joint stock company is an association of individuals in a business enterprise with transferable shares of stock,much like a corporation except that stockholders are liable for the debts of the business. This is a significant transformation in which people can now invest the company that they believe would make a profit from it as long as they pay for the stock. This enables a variety of people to participate in economic activities instead of limited the investment to only the members of social elites.

SPICE

Political- empires: The idea of gaining control of a territory by setting up trading post led to the formation of several trading-post empire. The influences such as language and culture brought by mother countries can still be observed in their colonies nowadays. An example is that English still remains as a dominant language in India.

Economic- capitalism: The unequal share of stocks between the shareholders is an example of capitalism. The more share a person owns, the more profit will be gained by that person. But on the other hand, the more money the person will lose if the company is not well-functioned.

E. (2015). East India Company | English trading company. Retrieved from

http://www.britannica.com/EBchecked/topic/176643/East-India-Company