Joint Stock Companies and Historical Context

Joint stock companies are exemplified by the British East India Company, which was one of the earliest.
The Dutch East India Company was also among the first to issue stock certificates.

Stocks represent a way for companies lacking capital to raise funds.
Example: A company needs $100$ from investors. The company approaches investors and offers to split profits in exchange for their investment.
Scenario: The company creates a product for $100$ and sells it for $50$ each to $20$ people, generating $(50 \times 20 = 1000)$ dollars.
The profit of $1000$ is then split between the company and investors. If three people split the profit, each would get $333.33$ .
This illustrates how stocks can provide a return on investment. Investing $100$ can result in a profit, such as $333.33$ , showcasing the potential of stocks.
It is generally advised to buy stocks when their prices are low to maximize potential gains when they increase in value.

Joint stock companies began to emerge.
Henry Hudson, a Dutch explorer, is known for exploring what is now called the Hudson River.
Hudson was in search of the Northwest Passage.
Hudson's explorations, based out of New Amsterdam (modern-day New York), were valuable to the Dutch.