Meaning and features of joint stock companies?

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Meaning of Joint Stock Companies
A joint stock company is a type of business organization where the capital is raised by issuing shares to the public. Each shareholder owns a portion of the company proportional to the number of shares they hold. This structure allows for the pooling of resources and sharing of risks among multiple investors.
Features of Joint Stock Companies

Limited Liability: Shareholders are only liable for the company's debts up to the amount they have invested, protecting their personal assets.
Separate Legal Entity: A joint stock company is considered a separate entity from its owners, allowing it to own property, enter contracts, and sue or be sued independently.
Perpetual Succession: The existence of a joint stock company is not affected by changes in ownership. It continues to exist even if shareholders leave or pass away.
Transferability of Shares: Shares in a joint stock company can be easily bought and sold, providing liquidity for investors and facilitating capital raising.
Professional Management: Companies can hire skilled managers to operate the business, allowing shareholders to benefit from expert management without being involved in day-to-day operations.
Ability to Raise Capital: Joint stock companies can raise significant funds by issuing shares to the public, enabling large-scale operations and expansion.

Conclusion
In summary, joint stock companies play a crucial role in the economy by allowing individuals to invest in business ventures while limiting their risk. Their unique features foster growth, innovation, and financial collaboration among diverse shareholders.

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