The formation of joint-stock companies, its role in modern economic developments

The joint-stock company is a form of economic activity of organization, which its authorized capital is divided into some number of shares. Shares of JSC are issued by company and assigned to its shareholders with certain rights, including the right for company management and receiving a part of profit in the form of dividends of the company. The shareholder of the joint-stock company is an owner of company shares. In other words, shares are equity securities that assigned a share in the company’s business to their owners, and the shareholder is one of the owners of the company. Based on these, the article discusses the role of joint-stock company, history of development, conditions and establishment. Moreover, this study covers principles in implementation processes and advantages and disadvantages.