Know about Joint Stock Company

A Joint Stock Company is a business organization that is owned by its investors.


Many investors purchase shares of the company and are known as shareholders. 

These companies are created to run the company and save it from financial crisis as it is too expensive for an individual.

Shareholders can sell their shares and transfer them to others without affecting the company.

It features a separate legal entity and members are not liable to the company which is limited.

The joint stock company could be categorized into many divisions such as Chartered, Statutory and Registered Company.

Joint-Stock companies are different from Public Companies. A public company is associated with unlimited liability.

Reliance industries ltd., Grasim Industries Ltd., Oil & Natural Gas Ltd., and State Bank of India are a few examples of Joint Stocks.

It has a Perpetual existence and holds different laws in different countries.