The cost of building
Railroads required money for land, grading, bridges, tunnels, rails, locomotives, cars, stations, terminals, shops, and maintenance.
Bonds and stock
Railroad companies became major issuers of corporate bonds and shares. Investors in the United States and Europe supplied capital for expansion.
A new scale of corporation
Managing a railroad over hundreds or thousands of miles required accounting systems, divisions, professional managers, operating rules, and large administrative organizations.
Booms, failures, and consolidation
Railroads were central to several financial booms and panics. Bankruptcies and reorganizations helped shape modern corporate finance and larger consolidated systems.