Which type of colony operated under joint-stock companies?

Corporate colonies operated under joint-stock companies, which were business entities where investors would pool their resources to fund a colony with the expectation of making a profit. This type of colony was primarily established in the early 17th century, with notable examples including the Virginia Company and the Massachusetts Bay Company. The funding from investors allowed for the exploration, establishment, and maintenance of colonies in the New World, where the joint-stock model spread the financial risk and shared potential profits among many shareholders.

In contrast, crown colonies were directly governed by the monarchy, creating a more centralized control. Royal colonies were also under the control of the king but were administered through appointed governors, while proprietary colonies were granted to individuals or groups who had received charters from the crown, allowing them a significant degree of autonomy. The distinction lies in the corporate structure and investment approach taken by corporate colonies, which showcased an early form of capitalism and the commercialization of colonization.