The Wealth of Nations

The Wealth of Nations

by

Adam Smith

Joint-Stock Company Term Analysis

Joint-stock companies are companies that allow anyone to purchase ownership shares in exchange for contributions to the company’s total pool of capital stock. The joint-stock model is the foundation for all modern publicly-traded corporations, but Smith considers it a corrupt, unfair system, particularly because it offers directors limited liability and encourages unhealthy risk-taking.

Joint-Stock Company Quotes in The Wealth of Nations

The The Wealth of Nations quotes below are all either spoken by Joint-Stock Company or refer to Joint-Stock Company. For each quote, you can also see the other terms and themes related to it (each theme is indicated by its own dot and icon, like this one:
Labor, Markets, and Growth Theme Icon
).
Book 5, Chapter 1 Quotes

Frequently a man of great, sometimes even a man of small fortune, is willing to purchase a thousand pounds share in India stock, merely for the influence which he expects to acquire by a vote in the court of proprietors. It gives him a share, though not in the plunder, yet in the appointment of the plunderers of India. [...] About the prosperity of the great empire, in the government of which that vote gives him a share, he seldom cares at all. No other sovereigns ever were, or, from the nature of things, ever could be, so perfectly indifferent about the happiness or misery of their subjects, the improvement or waste of their dominions, the glory or disgrace of their administration, as, from irresistible moral causes, the greater part of the proprietors of such a mercantile company are, and necessarily must be.

Related Characters: British East India Company
Page Number: 954–955
Explanation and Analysis:
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Joint-Stock Company Term Timeline in The Wealth of Nations

The timeline below shows where the term Joint-Stock Company appears in The Wealth of Nations. The colored dots and icons indicate which themes are associated with that appearance.
Book 5, Chapter 1
Institutions and Good Governance Theme Icon
Mercantilism and Free Trade Theme Icon
There are two kinds of companies: regulated and joint-stock companies . Regulated companies control a certain branch of trade and allow any merchant to join... (full context)
Institutions and Good Governance Theme Icon
In joint-stock companies , people pool their resources and become co-owners. These joint-stock companies are not the same... (full context)
Labor, Markets, and Growth Theme Icon
Capital Accumulation and Investment Theme Icon
Institutions and Good Governance Theme Icon
Mercantilism and Free Trade Theme Icon
Money and Banking Theme Icon
Joint-stock companies tend to encourage waste and corruption, start unjust wars, and fail unless they have monopolies... (full context)