Joint-Stock Company?This made them practical for U.S. colonial-era ventures that couldn't be financed by one person or entity alone.Whereas a partnership or a sole proprietor, it has no such legal existence apart from the person involved in it. So the members of the joint stock company are not liable to the company and are not dependent on each other for business activities.A joint-stock company is a business owned by its investors, with each investor owning a share of the company based on the amount that they've invested.Of course, the shareholders all expected to receive a portion of any earnings, commensurate with their investments.In the past, any shareholder

could be held totally liable for debts that a company owed and couldn't pay.Features of Joint Stock Company:

Separate Legal Entity - A joint stock company is an individual legal entity, apart from the persons involved.Transferable share - A company's shareholder without consulting can transfer his shares to others.Incorporation-For a firm to be accepted as an individual legal entity, it has to be incorporated.Joint-stock companies (then and now) can raise a large amount of money by issuing shares to various individuals.Today, a

shareholder's liability is generally limited to their investment in a company.It is a predecessor to the modern- day corporation and other types of registered companies in the the world.The legal liability that shareholders must shoulder is different.