The origins of securities are connected to the Age of Discovery (15-16th centuries). Newly discovered countries were rich in various goodies that explorers took back with them to Europe to sell. Exclusive goods of discovered and conquered lands became extremely popular in Europe, thus giving the start to joint stock companies that would import these goods in large quantities. These companies were the first issuers of securities.
Lithuania’s first industrial joint stock company was established in 1832 in Klaipėda. The company started its operation by establishing a bakery and later, in 1863, the same joint stock company set up a steam mill. In 1862, a limited liability foreign capital joint stock company, Kaunas Water Supply Company, was established and its share capital consisted of 100,000 shares. In 1871, Klaipėda Brewery also became a joint stock company.
The establishment and operation of joint stock companies provided a significant stimulus for the economic development of countries, since they could continue their operation by attracting new investors even when there was a shortage of available funds or when investors were not willing to risk a larger part of their assets.
Therefore, the main advantage of joint stock companies is the fact that they are not limited to just one shareholder, but gather a group of natural and legal persons to establish and develop the operation of such companies. Due to having more investors, such company can form a larger capital and investors themselves can invest either a small or a large sum of money without seriously risking their individual financial contribution.
