The Dutch were the first to establish joint stock enterprises. The first shares on the Amsterdam Stock Exchange were issued by the Dutch East India Company in 1602. It was the first corporation to provide stocks and bonds to the public. The joint-stock company is the forerunner of the modern corporation. A joint-stock company is a corporation owned by its shareholders, with each shareholder owning a share proportional to the quantity of shares purchased. Joint-stock firms are formed to fund projects that are too costly for an individual or even a government to fund. A joint-stock company's owners expect to share in its profits. Investors in joint-stock firms have historically had unlimited liability, which means that a shareholder's personal property may be confiscated to pay off debts if the company failed. Except for a historical connotation with limitless liability, the phrase joint-stock company is almost equivalent with corporation, public business, or just plain company. To put it another way, a contemporary corporation is a joint-stock firm that was formed to reduce shareholder responsibility. A joint-stock company is governed by the laws of each country. A process to limit liability is usually included.

Abhijith S

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