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by Kerrick
905 days ago
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If I remember anything from my high school social studies class, the reason was the ability to spread investment risk across multiple investors while also shielding the investors and employees from some personal legal liability. I think I even remember that companies/corporations predate stock exchanges. |
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While not definitive, ChatGPT says that:
> The idea of organizing a group of people to work towards a common goal for profit or mutual benefit has evolved over centuries. The modern concept of a company, with legal structures and formalized business practices, has its roots in the emergence of capitalism during the Industrial Revolution in the 18th and 19th centuries.
Whereas the first stock exchange is somewhere between 1300 and 1600: https://en.wikipedia.org/wiki/Stock_exchange#History
Wikipedia doesn't have a history section on it's page for company, but it says this:
> By 1303, the word company referred to trade guilds. Usage of the term company to mean "business association" was first recorded in 1553, and the abbreviation "co." dates from 1769.
You can tweak your definition by the means you'd like, but I think an honest assessment would be at this point to say they were concurrent.
https://en.wikipedia.org/wiki/Company#Semantics_and_usage
So your statement seems incorrect. I'm no expert, just curious.