Joint Stock Company

Joint Stock Company - Joint Stock Company financed with capital invested by the members or stockholders who receive transferable shares, or stock. It is beneath the control of certain specified managers called directors. A multiparty stock company formed of partnership, possessing the element of personal liability where each member remains financially responsible for the acts of the company. It is not an above-board entity separate from its stockholders. A multiparty stock company differs from a partnership in that the latter is composed of a few persons brought together by shared confidence. Partners are not free to retire from the firm or substitute other persons.