Companies Issue Stocks

The unprecedented surge in the value of stock assets in 2021 was replaced by a fall amid high inflation and the strengthening of monetary policy by the world's central banks. By way of comparison, here is an example: in 2021, the U.S. broad market index S&P 500 was up 26.9%, in 2022 it fell by 15.3%. In this environment, many investors stop investing in growth stocks when investing in company prospects. They are beginning to invest in value stocks, i.e., companies with already built and steadily operating businesses that are generating returns.

A successful voyage of the Dutch East India Company ships brought great returns, but statistically, one sailing ship in three returned home - the others could not withstand storms and pirate raids. It was necessary to assure on paper the responsibility for the ship and to determine how much return everyone who had rights to the ship would receive. This is how the company became the first stock company in the world - it issued securities in the early seventeenth century.