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As overseas trade increased in the 1600s, many projects were too large for one entrepreneur to pay for. For example, if a project or voyage failed, that individual would lose everything. As a result, groups of entrepreneurs began to form joint-stock companies. A joint-stock company is a business in which many people can invest. Investors buy shares in the company. These shares are called stocks. By owning stock, investors would share the expenses, the risks, and the profits.