Corporations exist for the purpose of pooling risk and pooling resources. The first modern corporations emerged in the Netherlands in early modern era. As the Age of Discovery unfolded, entrepreneurs saw opportunity in the vast trade networks that opened up in places like the Americas, Africa and Asia. Demand for fur, tobacco, guns, spices and slaves created an international trade by sea. Merchants tried tapping into markets far away from home. However, it became apparent that there was risk involved as well. One bad day at sea could sink a ship, and destroy the fortune of a merchant. So, to hedge this risk, merchants got together and created joint stock corporations which allows them pool the risk and uncertainty that came from operating an enterprise that spanned across vast distances and risked stormy seas, pirates and the ups and downs of the market. Thus a joint stock corporation could own 30 ships, if a few of them sank (the happening of which was all but inevitable) it would not bankrupt the company as they still owned many others that would be able to make up for the costs..