Question

What change in investment strategies has contributed to our economic system evolving into institutional capitalism, according to some analysts

Answer 1

Answer:

From the end of the Middle Ages to the first centuries of the Modern Era, some new investment strategies were developed, which contributed greatly to the development of capitalism.

Explanation:

In particular, group investment in companies that did not have a single, personal owner. This is what we know today as corporations.

The main advantage of a corporation is that many investors pour their money, something that raises the amount of capital, while at the same time not holding full personal responsability over their investments in case the corporation fails. In other words, investors do not have to pay with their personal wealth in case of corporate failure.

Two important early corporations are the Dutch East India Company, and the British East Indian Company. They were very important for the development of capitalism.