What is a joint stock company?

Stock Corporation is a company whose ownership is divided into parts called stocks. The buyer of these shares, known as shareholders or shareholders, elects the directors who manage the company. All stock corporations are non -profit organizations. These documents are registered by the Company and provide basic information about the company, such as its address and type of business. When creating a joint -stock company, the Company will also be required to determine the quantity and type of shares that will be issued. In some cases, a corporate charter or statutes can determine the restrictions on which shareholders can sell their shares. Although there may be restrictions on the sale of shares, shares are considered as a shareholder's assets and do not belong to the company itself.

In general, Stock Corporation has limited responsibility. In this case, shareholders are responsible only to the amount of money invested in a company that loses if the company fails. However, if the company is in debt beyond the value of its assets, andCut -ccionists are not responsible.

Stock Corporation can be publicly or privately organized. In some cases, the private company Stock Corporation can limit the shares to be sold. They held closely companies, with several shareholders, often such restrictions.

If the company is publicly held, then shares are available to buy any party. These companies are often registered on the stock exchange where shares can be traded extensively. Public traded companies can bring money by selling more shares. They can also use profits to purchase shares of the company back from shareholders.

Staters

can earn money from their shares by selling it for profit or dividend collection. If the value of the shares has increased, the shareholder may decide to sell them. Although the buyer pays more than the seller for shares, they buy the same percentage of the company as the seller.

Dividends are payments made by Stock Corporation to their shareholders. Dividends are generally based on the company's profits and can be paid in cash or more shares.

Staters

are eligible to have joining company policy. This may include decisions related to the election of members of the Board of Directors, buying other companies and implementing certain investments. The shareholders vote on these decisions. In some companies, shareholders will receive recommendations from the management of the company about how they should vote.

The number of shares owned by the shareholder in a warehouse company determines the number of votes assigned to shareholders. If one person owns more than 50 percent of society, it is said that he has a control interest in society. Given that its voting power is more than all other shareholders, it has a significant impact on the administration of corporation.