The arms of the Virginia Company of London,
c.
1600.
MPI/Hulton Archive/Getty Images
joint-stock company
, a forerunner of the modern corporation that was organized for undertakings requiring large amounts of capital. Money was raised by selling shares to investors, who became partners in the venture. One of the earliest joint-stock companies was the
Virginia Company
, founded in 1606 to colonize
North America
. By law, individual shareholders were not responsible for actions undertaken by the company, and, in terms of
risk
exposure, shareholders could lose only the amount of their initial
investment
.
See also
corporation
.