What is the primary goal of a joint-stock company?

The primary goal of a joint-stock company is to generate profit for investors. Joint-stock companies allowed multiple investors to pool their resources and share the risks associated with starting a new venture, particularly in the context of exploration and colonization in the 16th and 17th centuries. By doing so, they were able to fund larger projects than any single investor could finance alone. The profits made from these ventures—such as trade, land acquisition, and resource extraction—were then distributed among the investors based on their share of ownership in the company.

This model was crucial during the age of exploration, as it enabled the establishment of colonies and trading posts, significantly contributing to economic expansion and the creation of new markets. The focus on generating profits aligns with the operational principle of these companies, as their sustainability and success relied on appealing to investors looking for financial returns.