So here's a weird thing about the early stock market: It was common for a long time to buy stock in a company by paying only a fraction of the share price, and to pay the rest in installments over time. When did we end this, and why?
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I haven't figured out yet if you paid the rest in regular installments, or if there were capital calls by the company when they needed cash. Also not sure what happened if you failed to make payments—did you forfeit your equity?
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In any case the whole model certainly seems suboptimal compared to today's model of having multiple rounds of investment, each of which is paid in full, each priced separately. But when and how did we figure this out?
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Oh, another wacky thing: During the South Sea Bubble around 1720, when the South Sea Company sold shares above par value, they booked the excess as *revenue*. So they could report *profits* from doing nothing other than selling shares—and then pay those out as dividends!
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Basically the whole thing was a Ponzi scheme (and Ponzi himself wouldn't come along for another 200 years). Fortunately today we have accounting standards that don't let you play this particular trick. Again, fascinating to see all the mistakes we had to make along the way
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You, sir, are clearly a better Googler than I!
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Čini se da učitavanje traje već neko vrijeme.
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