The evolution of the joint-stock, limited-liability corporation represents a significant advancement in the way businesses are financed and managed. In this structure, multiple investors contribute capital, which is collectively owned, allowing for the accumulation of larger sums necessary for various ventures. This collaboration among investors lowers individual financial risk, as their combined resources can support the enterprise.
Moreover, the limited-liability aspect safeguards investors' personal fortunes, as the corporation is treated as a separate legal entity. This means that if the venture fails, investors are not liable for the company's debts beyond their initial investment. Niall Ferguson's "The Ascent of Money" highlights this innovation as a crucial development in financial history, shaping modern business practices and encouraging entrepreneurial risk-taking.