A business structure wherein numerous investors pool their capital to fund a venture and share in the profits and losses is called a joint stock company. These entities were significant during the Age of Exploration, allowing for the financing of voyages to the New World. A prominent example is the Virginia Company, which funded the establishment of Jamestown.
This model facilitated large-scale endeavors that single individuals or smaller partnerships could not afford. By distributing risk among many shareholders, these enterprises encouraged investment and exploration. The reduced individual financial burden fostered economic growth and enabled colonization efforts that shaped early American history. This mechanism allowed England, and other European powers, to compete with Spain in the acquisition of overseas territories and resources.