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Provided sales and assets exist within the company, a joint-stock company is effectively a forum for three- party trading: Owners, i.e. shareholders, are seeking financial funds (profits) and offer economic assets, in the form of capital. Employees, contractors and other contracted parties seek compensation and offer labor for this.
Prior to the late 19th century, most companies were incorporated by a special bill adopted by legislature. By the end of the 18th century, there were about 300 incorporated companies in the United States, most of them providing public services, and only eight manufacturing companies. [1]
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A joint-stock company is a company owned by several, generally private, investors. They’re an in-between creation, held more closely than a public company but more widely traded than a partnership.
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The Massachusetts Bank was the first federally chartered joint-stock owned bank in the United States and only the second bank to receive a charter in the United States. The bank's charter was signed by John Hancock and among its early account holders were such notable figures as Paul Revere , Samuel Adams , John Hancock and Henry Knox .
[a] In 1835, it was taken over by a group of Reformers [b] and constituted as a joint-stock company called the Farmers' Joint Stock Banking Company by deed of settlement. [3] The first board of directors appointed John Elmsley, a member of the Family Compact , [ c ] to be its first president, which forced Hincks and other Reform investors to ...
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