Gone Fishin’!

In the 1600s European governments issued charters that gave trading companies rights that only governments had, such as maintaining an army and navy, declaring war or maintaining a new area of land. How did this help/support colonization?

A charter established certain rights for the colonizing company that were denied to any competitors. Only the company might control trade with the new colony. In the case of the Netherlands, in accord with charters granted to the Dutch East Indies Company and Dutch West Indies Company, sailing ships of the companies, called by the British "Dutchmen," were heavily armed for combat as well as transport. A chartered company could attract investors in Europe who bought shares of stock without actually going to the colonies. The company could use the money to maintain the colonies and pay back the shareholders by exporting raw materials from the colonies to other parts of the world.