Shareholders, Value and CryptoMarkets

Take Five

The joint stock company idea is brilliant for pooling capital. Investors can buy risk, but limit their overall potential liability. This way of doing projects (for originally they were more projects than permanent businesses) made a lot of very expensive things possible. Like the exploration and settlement of the new world. States acting alone would not have done it.

But is it perfect? Of course not. Like any and all human inventions, it was designed to solve a problem — how to better pool capital. The nice protections that we give investors to do this mean nothing if pooling capital is not the problem at hand. What am I talking about? Well, it may be more important to share ideas and partner. It may be more important to build a team. It may be more important to learn about the market. And pooling capital might be the easy part, for…

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