Which theory was developed to justify investing in joint-stock companies for the new world?

The theory of mercantilism was developed to justify investing in joint-stock companies for ventures in the New World. This economic theory emphasized the importance of accumulating wealth, particularly gold and silver, and maintaining a favorable balance of trade. Joint-stock companies allowed investors to pool resources and share risks, making it easier to fund overseas exploration and colonization, which were seen as vital for national power and economic prosperity.