Joint-Stock Companies

Definition

Joint-Stock Companies were businesses owned by shareholders who share in its profits but are not personally liable for its debts. They were used during colonial times to fund colonies like Jamestown.

Related terms

Shareholder: An individual or institution that legally owns one or more shares of stock in a public or private corporation.

Dividend: The distribution of some of a company's earnings to shareholders, usually as cash payments.

Limited Liability: A type of legal structure for an organization where owners are not personally liable for its debts.