Joint Stock Company

Loading the player...

What is a 'Joint Stock Company'

A joint stock company is an organization that falls between the definitions of a partnership and corporation. This type of company issues stock and allows for secondary market trading; however, stockholders are liable for company debts.

BREAKING DOWN 'Joint Stock Company'

This is a type of company that has access to the liquidity and financial reserves of stock markets, but also has the restrictions of a partnership.

RELATED TERMS
  1. Publicly Traded Partnership - PTP

    A business organization owned by two or more co-owners, that ...
  2. Secondary Stock

    A stock that is considered riskier than blue chips because it ...
  3. General Partnership

    A arrangement by which partners conducting a business jointly ...
  4. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
  5. Firm

    A firm is a business organization, such as a corporation, limited ...
  6. Company

    An entity formed to engage in a business. A company may be organized ...
Related Articles
  1. Investing Basics

    What's a Secondary Offering?

    A secondary offering is the issuance of new stock from a company that has already made its initial public offering.
  2. Investing Basics

    What is the Stock Market?

    A stock market is where shares in corporations are issued and traded. Stock markets are key components of a free market economy.
  3. Entrepreneurship

    MLPs and Limited Partnerships: How They Differ

    Limited partnerships and master limited partnerships have one difference that makes all the difference.
  4. Markets

    How Corporate Events Affect Stock- And Bondholders

    Investors tend to buy either stocks or bonds, but rarely choose between the two. Find out when you'll benefit from one over the other.
  5. Economics

    What is a Joint-Stock Company?

    A joint-stock company is a business organization that falls between the definitions of a corporation and a partnership.
  6. Investing Basics

    The Different Between Preferred and Common Stock

    Preferred and common stocks are different in two key ways.
  7. Term

    What are Limited Partnerships?

    A limited partnership involves two or more partners conducting a business, but one is only liable for his capital investment. They are also called silent partnerships or limited liability partnerships.
  8. Investing Basics

    Why Do Companies Care About Their Stock Prices?

    Read on to learn more about the nature of stocks and the true meaning of ownership.
  9. Entrepreneurship

    What's the Purpose of IRS Form 1065?

    Business partners need the information on this form to complete their own tax returns. Here are the details.
  10. Investing

    Advising FAs: How To Explaining Stocks to a Client

    Without a doubt, common stocks are one of the greatest tools ever invented for building wealth.
RELATED FAQS
  1. Does stockholders equity accurately reflect a company's worth?

    Learn whether stockholders' equity accurately reflects a company's worth. Stockholders' equity is found by taking the difference ... Read Answer >>
  2. What's the difference between limited liability partnership and general partnership?

    Learn the differences between general partnerships and limited liability partnerships; each type has unique traits, benefits ... Read Answer >>
  3. What is the difference between the equity market and the stock market?

    Discover the basic information about the equity, or stock, market and the two primary classifications of equities that are ... Read Answer >>
  4. What kind of assets can be traded on a secondary market?

    Learn about the difference between the primary market and the secondary market, and what types of assets are traded on secondary ... Read Answer >>
  5. Is par value or market value more important to stockholder equity?

    Find out about stockholders' equity, how to calculate it, and whether par or market value of stock is more important to stockholders' ... Read Answer >>
  6. What does total stockholders equity represent?

    Understand the equation for total stockholders' equity and what it represents. Learn the components of stockholders' equity ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center