Jointstock

Jointstock refers to a form of business organization in which capital is divided into shares owned by shareholders. The liability of each shareholder is limited to the amount unpaid on their shares, and ownership is represented by transferable shares. A joint-stock company is a separate legal entity from its owners, capable of entering contracts, acquiring assets, and suing or being sued in its own name. The objective is typically to undertake commercial activities and distribute profits to shareholders as dividends in proportion to their holdings.

Historically, joint-stock arrangements emerged in medieval and early modern Europe as a way to raise large sums for long-term trading ventures and colonial enterprises. The Dutch East India Company (VOC) and the English East India Company are among the best known early examples. Over time, the structure matured into the modern corporation, with standardized regulatory frameworks, share markets, and corporate governance.

Key features include divisible capital into shares, transferability of ownership, limited liability for investors, management by a board elected by shareholders, and annual reporting and general meetings. The presence of a separate legal personality allows the company to outlive its founders and to raise capital through the sale of shares to the public, including through stock exchanges in many jurisdictions.

Advantages of the joint-stock structure include access to large pools of capital, risk sharing, and liquidity of ownership. Disadvantages can include agency costs, regulatory complexity, and the need for governance mechanisms to align management and shareholder interests.