What Is The Adventages Of Joint Stock Company?

A Joint Stock Company is basically a business entity. It can be in the form of corporation or a partnership. The company issues a certificate of ownership or stocks in return for money invested. The shareholders on the other hand, are free to transfer their ownership shares by selling their shares to others any time.

It has a number of advantages such as:

- The owners of stocks get a number of privileges.
- The owners of stocks get to elect the directors and principal officers of the company.
- The shareholders remain aware of the company situation through annual reports and other reports that are sent to them.
- Shareholders can also stand for directorship of the company.
- The limit of liability of shareholders only extends to the face value of their shareholding.
- Thus, they have a limited liability.
- They also have a share in the net profit made by the company.