The industrial revolution in the 18th and 19th centuries brought about major economic and technological advancements. An important driving force behind this was the development of joint stock investment banks, which provided capital for industrialization through innovative financial instruments like joint stock companies and limited liability. In this article we will explore how these financial innovations facilitated the rapid economic expansion of this transformative period.
Joint stock banks increased available capital for industry
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Limited liability encouraged investor participation
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In summary, the emergence of joint stock investment banks was a crucial factor enabling the scale and pace of industrialization seen in the industrial revolution by unleashing wider capital deployment.