Meaning of Joint Stock Companies
Joint stock companies are a type of business organization where capital is raised through the sale of shares to the public. They play a crucial role in modern economies by allowing individuals to invest in a company and share in its profits and losses.

Key Characteristics:
- Limited Liability: Shareholders are only liable for the company’s debts up to the amount they have invested. This protects personal assets from business liabilities.
- Separate Legal Entity: A joint stock company is considered a separate legal entity from its shareholders. It can own property, enter contracts, and sue or be sued independently.
- Perpetual Existence: The life of a joint stock company is not affected by changes in ownership. It continues to exist even if shareholders die or sell their shares.

Types of Joint Stock Companies:
- Private Joint Stock Companies: These are not allowed to offer shares to the public and have a limited number of shareholders.
- Public Joint Stock Companies: These can offer shares to the general public and are often traded on stock exchanges.

Advantages:
- Access to Capital: They can raise substantial funds by selling shares, which can be used for expansion and development.
- Transferability of Shares: Shares can be easily bought and sold, providing liquidity for investors.

Conclusion:
Joint stock companies are vital for economic growth as they combine the resources of multiple investors, allowing for larger business ventures while minimizing individual risk. Understanding their structure and benefits is essential for anyone studying business and finance.