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Apr 11

Five advantages of joint stock?

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Apr 11
1. Limited liability: Shareholders in a joint stock company have limited liability, meaning they are only liable for the amount they have invested in the company. This protects their personal assets in case the company faces financial difficulties.

2. Access to capital: Joint stock companies can raise large amounts of capital by issuing shares to investors. This allows them to fund expansion, research and development, and other growth initiatives.

3. Transferability of shares: Shares in a joint stock company can be easily bought and sold on the stock market, providing liquidity to shareholders and allowing them to easily exit their investment if needed.

4. Professional management: Joint stock companies typically have a board of directors and professional management team in place to oversee the operations of the company. This can lead to more efficient decision-making and better corporate governance.

5. Diversification: By investing in a joint stock company, shareholders can diversify their investment portfolio and spread their risk across multiple companies and industries. This can help reduce the overall risk of their investment portfolio.

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