Trading Companies

Trading Companies were first seen in Theodova and the Republic of Irill. These companies often operate long trade routes to maximize their profits. Most trading companies are not craftsmen, but instead merchants buying and selling goods.

A monopoly trading company can only exist if other traders are forbidden to buy and sell their goods. This typically comes about when the local government grants a single trading company a charter grating exclusive access.

The more common trading company will issue stock. These stocks can be for the trade route in its entirety or more commonly for a single trip. Selling this stock allows the trading company to offset initial costs, while selling off potential future profits. The percentage of shares that are owned determines the percentage of profits they are entitled. Savvy stock buyers will insist on selling cost for the goods instead of profits as a profit determination allows the trading company to inflate its costs.

There exists no stock exchange so the stocks are so to private investors and largely spread by word of mouth and reputation. If a trading company has a history of returns they can sell future stocks for a higher cost.

Should the trade route or caravan fail then those holding the stock certificates get nothing.

• List of Trading Companies