Meaning of Joint Stock Company
A joint stock company is a type of business organization where capital is raised by issuing shares of stock to the public. This structure enables individuals to invest in the company, allowing for collective ownership and limited liability.

Nature of Joint Stock Company
- Separate Legal Entity: A joint stock company is recognized as a legal person, distinct from its shareholders.
- Limited Liability: Shareholders are only liable for the company’s debts to the extent of their investment in shares, protecting personal assets.
- Perpetual Existence: The company continues to exist independently of the shareholders’ status, ensuring stability and continuity.
- Transferability of Shares: Shares can be easily bought or sold, providing liquidity to investors and facilitating capital movement.

Types of Joint Stock Companies
1. Private Limited Company:
- Restricted to a small number of shareholders (usually up to 50) and cannot offer shares to the public.
- Shares are not freely transferable.
2. Public Limited Company:
- Can raise capital by offering shares to the public.
- No limit on the number of shareholders, promoting greater investment.
3. One Person Company:
- A new type of company where a single individual can own and manage the company.
- Combines the benefits of sole proprietorship with corporate advantages.
4. Non-Profit Company:
- A company formed for promoting charitable, educational, or social objectives.
- Profits are reinvested in the company rather than distributed to shareholders.
In conclusion, joint stock companies play a vital role in modern economies by facilitating investments, spreading risks, and promoting entrepreneurship.