The whole reason stocks where invented was so that you could spread the risk. Instead of owning 100% in one ship, you owned stock in many ships, so if one ship sank you didn't loose it all.
Huh? Stocks (shares) were invented to raise capital for businesses.
I think GP was talking about the historical (1600s) perspective, in which stock was literally created for both raising capital and reducing risk in maritime stuff (specifically East India company).
Yes, so that many people can invest in the business. And the investors invest in many businesses.