joint-stock company

Definition:

a company that trades for the benefit of all its members and divides its profits among members according to the size of their contributions to its stock (i.e. contributed capital). In general, members do not take part in the day-to-day running of the company’s business. Joint-stock companies may be distinguished from associations of traders who each trade for their own account and from partnerships in which each partner takes an active part in running the business. A joint-stock company is normally incorporated and its members; interests are normally represented by shares or stock.



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