3 ms·
The whole reason stocks where invented was so that you could spread the risk. Instead of owning 100% in one ship, you owned stock in many ships, so if one ship
by z3t4 9y ago
The whole reason stocks where invented was so that you could spread the risk. Instead of owning 100% in one ship, you owned stock in many ships, so if one ship sank you didn't loose it all.
- thoth 9y agoHuh? Stocks (shares) were invented to raise capital for businesses.
- dmoy 9y agoI think GP was talking about the historical (1600s) perspective, in which stock was literally created for both raising capital and reducing risk in maritime stuff (specifically East India company).
- z3t4 9y agoYes, so that many people can invest in the business. And the investors invest in many businesses.