2006-10-18 05:30:47 · 1 answers · asked by Anonymous in Social Science ➔ Other - Social Science
In that day and age, there were not many super-rich individuals who could afford to finance colonies. People in Europe who were rich or well-off had most of their assets in the form of land. Not many of them wanted to take the risk of selling their land and putting down money on risky investments like colonies.
To put it in modern terms: Should Bill Gates sell off all of his shares in Microsoft in order to finance an expedition to Mars? It could potentially be the greatest money-maker ever, but he could also lose his shirt.
Joint-stock companies such as the East India Corporation were a way for many people to share the risk by investing only a small portion of their money. If the colony was successful, they made a profit; if it failed, they only lost a bit of money.
2006-10-18 05:42:43 · answer #1 · answered by sandislandtim 6 · 1⤊ 0⤋