What was significant about the Joint-stock company?

Question

What was significant about the Joint-stock company?

Since this is not my area of expertise, I searched Google under the key words "joint stock company" to get these possible sources:

http://en.wikipedia.org/wiki/Joint_stock_company
http://www.investorwords.com/2668/Joint_Stock_Company.html
http://www.investopedia.com/terms/j/jointstockcompany.asp
http://www.answers.com/topic/joint-stock-company

I hope this helps. Thanks for asking.

Answer 1

A joint-stock company is a type of business entity where ownership is divided into shares of stock, and the shareholders are not held personally liable for the company's debts or liabilities. This is significant because it allows for the pooling of resources from multiple investors, making it easier for large-scale projects to be funded and undertaken. The joint-stock company also allows for the transferability of shares, which provides investors with liquidity and the ability to easily buy or sell their ownership in the company. Additionally, the limited liability aspect of a joint-stock company helps to mitigate risk for individual shareholders, as they are only liable for their investment in the company and not personally responsible for its debts. Overall, the joint-stock company has played a vital role in the development of modern capitalism and has facilitated the growth of large corporations and economic expansion.