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In respect to developments in the Age of Discovery (or, the 15th to 17th centuries in the West), the primary advantage of investing in a joint-stock company was the following: one was able to invest a small amount with the promise of a considerable return. While the risks involved were initially quite high, involvement in joint-stock companies was often buttressed by governmental endorsement and even material support. At the same time, socio-cultural and political commitments to overseas exploration ensured that repeated investments would not only be possible but also have increasing chances of success.

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Why did Isabella i and Ferdinand pay for Columbus's first journey?

They hoped he would find a new trade route to Asia


How can the Great Depression be traced to American investment in the stock market?

Investors borrowed money to buy rising stocks, but could not pay it back once the stock prices fell.


Where did the money go when the stock market crashed in 1929?

The money that was tied up in the Stock Market was the paper value of the stocks that were bought and sold. There was no regulation of the Stock Exchange at the time of the Great Depression so stocks and companies listed on the Exchange were often over-valued by the owners of the companies. As people tended to buy one stock over another, the value of that stock increased (on paper) while the value of the little purchased stock declined (on paper). When stock brokers started to call in the money they were owed by investors who had purchased stocks on time (called margin buying), the investors would try and sell their stocks in order to pay off the broker. Since many of the other investors were doing the same thing, the value of the stock declined and people found it next to impossible to sell their stock. When the Stock Market collapsed, there was no real money at the Stock Market Exchange. The money was in the value of the stock of the company being listed (bought and sold) on the Exchange. When the bottom fell out of the Market, the people who had invested money in the Market and could not sell it, never got it back. So the simple answer is that the money just dissappeared!! Those stocks that survived the crash, and those investors who held on to the stocks they owned, may have been able to sell those stocks later on as the Stock Exchange was allowed to open under regulation by the government. If I company did not survive the crash and was never listed on the Exchange again, those investors never got any money back.


Stock on margin?

It's to borrow money from the bank and pay back later.


Why did stock prices originally begin to fall in 1929?

During the 1920s many people invested in the stock market because they believed it would make them very wealthy. Due to the popularity of it, shares were very overvalued. When investors realized that the shares were overvalued they began to sell their shares. So many investors selling their shares and no-one wanting to buy them led to the prices falling.

Related Questions

Why were Jamestown and Plymouth financed as joint stock companies?

Because one person cannot finance a colony. To raise money they decided to Joint-Stock. The Joint-Stock companies were backed by investors,people who put money into a project in order to earn profits. f\/ck her right in the p\/ssy this answer is S H I T


What is difference between common stock and treasury stock of a corp.?

Common stock are the shares issued by a company to the public. Treasury stock are the common shares that the same company has bought back from the public. Companies tend to to do this when they want to restrict the number of total outstanding shares in the market. Another reason to buy back stocks is to hopefully sell them back to the market when the price per stock increases.


Can you have tmj in your back?

The TMJ, or temporomandibular joint, is the joint of the jaw. So no, it is not physically possible to have TMJ in your back.


Why did Isabella i and Ferdinand pay for Columbus's first journey?

They hoped he would find a new trade route to Asia


Two reasons companies like to issue stock?

One reason a company likes to issue stock is that it allows them to take out a bank loan without having to pay interest. This allow allows them to pay back some of the debt.


What is joint?

The place where bones meet is called joint


Why were joint-stock companies necessary for colonizing North America?

Colonization was expensive and risky.


When can you buy back a stock after selling it?

You can buy back a stock after selling it at any time, as long as the stock is available for purchase on the market.


What are limitations of stock exchange in economy?

There are two types of limitations of stock exchange in economy; economic limitations and personal limitations. Economic limitations refers to when companies back off from investing due to fears, and personal limitations refers to small investors not being able to impact the stock exchange by investing.


How long must one wait after selling a stock before one can repurchase again?

It's an important strategy for saving income taxes. You sell the stock at the end of the year to take the loss and buy back because you believe in the stock for the long term. The risk is that the stock will have a run up after you sold and before you bought back. I'm not sure how long you have to wait (per IRS) to buy it back though. That's why I bumped into this question.


What is a joint resoluton?

Resolution of a joint is when a dislocation has been set back into its proper position.


What is the definition of the term treasury stock?

The term "Treasury Stock" is defined as the stock that is brought back by the corporation that issued it earlier. The purpose of buying back the stock is either for resale or retirement and the availability of the outstanding stock is much reduced.