A joint-stock company is a business entity in which shares of the company´s stock can be bought and sold by shareholders. Each shareholder owns company stock ...
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in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.
In modern-day corporate law, the existence of a joint-stock company is often synonymous with incorporation (possession of legal personality separate from shareholders) and limited liability (shareholders are liable for the company´s debts only to the value of the money they have invested in the company). Therefore, joint-stock companies are commonly known as corporations or limited companies.
