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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.
In a joint-stock company, the members are known as shareholders, and each of their shares in the ownership, control, and profits of the corporation is determined by the portion of shares in the company that they own. Thus, a person who owns a quarter of the shares of a joint-stock company owns a quarter of the company, is entitled to a quarter ...
A joint-stock company is a corporate form that dates back to the 16th century. It is a form of company in which ownership and liability is divided up by shares, which can be freely bought and sold.
The context for Adam Smith's term for "companies" in The Wealth of Nations was the joint-stock company. In the 18th century, the joint-stock company was a distinct entity created by the King of Great Britain as Royal Charter trading companies. These entities were sometimes awarded legal monopoly in designated regions of the world, such as the ...
However, a joint stock company must also try to maximize the return for its owners instead of only maximizing the return and customer services to its customers. This can lead to a decline in customer service to the extent that customers', management's and shareholders' interests diverge.
Amtorg Trading Corporation, also known as Amtorg (short for Amerikanskaya Torgovlya, Russian: Амторг), was the first trade representation of the Soviet Union in the United States, established in New York in 1924 by merging Armand Hammer's Allied American Corporation (Alamerico) with Products Exchange Corporation (Prodexco) and Arcos-America Inc. (the U.S. branch of All Russian Co ...
The stock has gained 26,920% over the past decade (as of this writing), prompting management to initiate a 10-for-1 stock split earlier this year -- after a 4-for-1 split in 2021.
Each company was made up of investors, known as "adventurers", who purchased shares of company stock. The Crown granted a charter to each company with a monopoly to explore, settle, or trade with a particular region of the world. Profits were shared among the investors according to the amount of stock that each owned.