Dose anyone know why were joint-stock companies a good way of financing new colonies in north america?

Answer 1

The voyages of discovery shifted the focus of European trade from the Mediterranean Sea to the Atlantic coast. Venice declined as a major trade center, while port cities prospered in Portugal and Spain followed by England, France, and the Netherlands (the Dutch). To increase their income from taxes on foreign trade, European monarchs encouraged the formation of joint-stock companies. Stock (or shares) was sold to many investors who shared the expense and risk of expensive ocean trading voyages. If a ship went down, no single investor lost everything, but if a voyage was successful, all stockholders shared in the profits. The modern stock market operates in a similar way today.
.............Best known of these companies were the British East India Company that traded mostly with India and the Dutch East India Company that operated in Southeast and East Asia. Both acted as extensions of their governments and even had their own armies. Joint stock companies promoted the rise of an economic system called capitalism. Capital is wealth such as ships, factories, or money. Under capitalism, people are free to own capital and make their own decisions about how to use it. Since joint stock companies were chartered by governments, they were a form of state-sponsored capitalism.

Answer 2

Gee I hope you get all your questions answered before your homework is due. I'd hate for you to have to actually work or anything.