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The old Dutch joint stock trading companies were required by their charters to liquidate and return all capital to investors every couple of years. That enforc
by JackFr 6y ago
The old Dutch joint stock trading companies were required by their charters to liquidate and return all capital to investors every couple of years. That enforces strict discipline on management. However after a few decades of that owners began to trust managers enough that a permanently capitalized enterprise seemed more efficient.
The development of modern financial capitalism is important and fascinating. These structures that we take for granted -- tradeable claims on assets, separation of ownership and management, perpetual life corporations, etc. -- all came about to solve particular problems.
Personally I don't foresee the LTSE succeeding, but I'm happy to see people try to innovate.
- aridiculous 6y agoFascinating. Do you have any suggested books or videos that track the history of finance?
- JackFr 6y agoThe Rise of Financial Capitalism: International Capital Markets in the Age of Reason (Studies in Monetary and Financial History) https://www.amazon.com/dp/0521457386/ref=cm_sw_r_cp_api_i_i-pwFbW9SPXGP https://www.amazon.com/dp/0521457386/ref=cm_sw_r_cp_api_i_i-... Manias, Panics, and Crashes: A History of Financial Crises, Seventh Edition https://www.amazon.com/dp/B017J5HBMS/ref=cm_sw_r_cp_api_r.pwFbFW55FRS https://www.amazon.com/dp/B017J5HBMS/ref=cm_sw_r_cp_api_r.pw... Devil Take the Hindmost: A History of Financial Speculation https://www.amazon.com/dp/0452281806/ref=cm_sw_r_cp_api_i_.aqwFbM0BWG0A https://www.amazon.com/dp/0452281806/ref=cm_sw_r_cp_api_i_.a... A History of Interest Rates, Fourth Edition (Wiley Finance) https://www.amazon.com/dp/0471732834/ref=cm_sw_r_cp_api_i_-cqwFb0825YFH https://www.amazon.com/dp/0471732834/ref=cm_sw_r_cp_api_i_-c... A Splendid Exchange: How Trade Shaped the World https://www.amazon.com/dp/0802144160/ref=cm_sw_r_cp_api_i_HgqwFbTV351T6 https://www.amazon.com/dp/0802144160/ref=cm_sw_r_cp_api_i_Hg...