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Joint-stock company

A joint-stock company is a business owned by people called shareholders. Each shareholder owns company stock in proportion to the number of their shares (certificates of ownership).[1] Some shareholders may own a larger proportion of a company's share than others. Shareholders are able to transfer their shares to others without any effects on the continued existence of the company.[2]

Incorporation, a legal process, gives a company a legal personality separate from shareholders, and limited liability. This means the shareholders are only liable for the company's debts to the value of the money they invested in the company. So, joint-stock companies are commonly known as corporations or limited companies.

  1. ↑ Courtney, Thomas B. (2002). The law of private companies, 2nd ed. Butterworths. p. 26. ISBN 1-85475-265-0.
  2. ↑ "Joint Stock Company". West's Encyclopedia of American Law. Retrieved 4 May 2012.

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