Joint Stock Company

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.

Notes:

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.

See also: Corporation, Liquidity, Partnership, Secondary Market, Shareholder, Stock

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Joint stock company

A form of business organization that falls between a corporation and a partnership. The company sells stock, and its shareholders are free to sell their stock, but shareholders are liable for all debts of the company.