Joint-Stock Companies
Definition
A joint-stock company is a business entity where different stocks can be bought and owned by shareholders. Each shareholder owns company stock in proportion to their ownership stakes.
Analogy
Imagine if your school project was a joint-stock company. Instead of just you working on it alone, you have classmates who contribute resources such as time or materials. In return, they get part ownership or credit based on how much they contributed.
Related terms
Shareholder: A person who owns shares in a company; they're essentially partial owners depending on how much stock they hold.
Dividend: This is what companies pay out to their shareholders from their profits. It's like getting an allowance from your parents after doing chores around the house!
Limited Liability Company (LLC): An LLC combines aspects of partnerships and corporations where owners are not personally liable for the company's debts or liabilities. It’s like having a safety net in case your school project fails - you won’t lose all your grades, just the ones for that project.
"Joint-Stock Companies" appears in:
Subjects (2)
Study guides (1)
Practice Questions (3)
- The development of joint-stock companies during the Commercial Revolution can be attributed to:
- How did joint-stock companies contribute to economic development during this period?
- How did the creation of joint-stock companies impact Holland's economy during the Dutch Golden Age?
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