stock corporation

A stock corporation, also called a joint-stock company, is a business entity owned by shareholders who purchase shares of the company's stock. These shareholders have limited liability, meaning they are only responsible for the company's debts up to their investment. The company is managed by a board of directors elected by shareholders, and its primary goal is to generate profit, often by selling shares and distributing dividends. Stock corporations are common because they allow for raising capital from many investors, provide the company with legal independence, and facilitate transferability of ownership.