What is a joint-stock company?
Q: What is a joint-stock company?
A: A joint-stock company is a business owned by people called shareholders.
Q: Who owns the company stock in a joint-stock company?
A: The shareholders own the company stock in a joint-stock company.
Q: How does the ownership of shares in a joint-stock company work?
A: Each shareholder owns company stock in proportion to the number of their shares (certificates of ownership).
Q: Can some shareholders own a larger proportion of a company's share than others?
A: Yes, some shareholders may own a larger proportion of a company's share than others.
Q: Can shareholders transfer their shares to others without any effects on the continued existence of the company?
A: Yes, shareholders are able to transfer their shares to others without any effects on the continued existence of the company.
Q: What is the legal process that gives a company a legal personality separate from shareholders, and limited liability?
A: Incorporation is the legal process that gives a company a legal personality separate from shareholders, and limited liability.
Q: What does limited liability mean for the shareholders of a joint-stock company?
A: Limited liability means the shareholders are only liable for the company's debts to the value of the money they invested in the company.
