In practice it has been entirely replaced by modern forms of business such as the LLC, the partnership and the corporation. They created the idea of a shareholder-held corporation, and gave rise to corporate structure as we know it today. Companies were founded in Europe to establish trading ventures and European colonies around the world. The idea of a joint stock company began in the late 16th century. This is the reason why different sources provide different definitions for the term вЂњjoint stock company.вЂќ It has largely fallen out of use, and as a result interpretations tend to differ. The term joint-stock company is largely an historical anachronism. This shareholder model also allows the company to seek capital without the potentially expensive interest requirements involved with lending. By selling ownership shares, the company raises money that it might otherwise not be able to get from its founders or business operations. The purpose of a joint-stock company is to raise capital. (However, businesses may choose to change that in their bylaws, setting conditions on ownership and transfer of shares.) While publicly and privately traded corporations, LLCs and even some partnerships are modern forms of the joint-stock company, generally speaking people use this term to refer to smaller, closely held organizations. It distributes ownership by shares, and investors can buy and sell their ownership stakes in the company largely at will. Consider working with a financial advisor about investing in or creating a joint-stock company.ДЄ joint-stock company is a business owned by its investors. While largely, if not completely, replaced by modern corporate structures, the joint-stock company is the precursor to corporations as we know them today. TheyвЂ™re an in-between creation, held more closely than a public company but more widely traded than a partnership. A joint-stock company is a company owned by several, generally private, investors.

Example joint stock company in history