Virginia Company

Definition

The Virginia Company was a joint-stock company chartered by King James I of England in 1606 to establish colonies in the New World. It was responsible for founding Jamestown, the first permanent English settlement in North America.

Analogy

Think of the Virginia Company as a group of friends pooling their money together to start a lemonade stand (Jamestown). They all share the risk if it fails, but they also share the profits if it succeeds.

Related terms

Joint-Stock Company: A business entity where different stocks can be bought and owned by shareholders. Each shareholder owns company stock in proportion to their ownership percentage.

Charter: A written grant by a country's legislative or sovereign power, by which an institution such as a company is created and its rights and privileges defined.

Settlement: An established community where people live on a permanent basis typically under the governance of their home country.