Joint Stock Company

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DEFINITION of 'Joint Stock Company'

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.

INVESTOPEDIA EXPLAINS '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. Shareholder

    Any person, company or other institution that owns at least one ...
  2. Joint

    A legal term describing a transaction or agreement where two ...
  3. Joint Bond

    A bond that is guaranteed by a party other than the issuer. A ...
  4. Corporation

    A legal entity that is separate and distinct from its owners. ...
  5. Liquidity

    1. The degree to which an asset or security can be bought or ...
  6. Partnership

    A business organization in which two or more individuals manage ...
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