The role of joint stock company in sustainability of capital development

Abstract

Classic companies are characterized and based on individual property and private initiative of individual owners. However, the processes of capital increase and the need for increasing ventures in production and trade, expansion of production and markets require the creation of large enterprises for the establishment of which was not enough accumulation of individual owner. The development of production on an ever-increasing scale and the constant pursuit of ever-increasing profits requires new forms of increasing capital, and even the association of individual capitals, although they have previously competed with each other. Such conditions lead to the functioning of a more modern form of business in the form of joint stock companies.