Friday, March 28, 2014

What financial institutions facilitated industrial production?

Financial institutions such as stock markets, insurance, and limited liability corporations facilitated industrial production. Limited liability corporations protected investors for responsibility of a firm's debt. These types of corporations gave investors more confidence in putting their money into multiple business ventures. Other business people continued to develop stock markets, which were used to financially support the growth of multiple industries by selling shares in companies to individual shareholders. On an international scale, the London Stock Exchange traded over 450 million euros of industrial share between 1882-1900.

picture of the London Stock Exchange of the 1870's

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