Overview of Joint Stock Companies

a. General

Stock company is quite popular yet expensive vehicle. Stock companies are distinguished by the fact that there is a readily available market for trading stocks representing equity interests. While in business partnerships and companies the right to alienate the share to a third party must be conspicuously stipulated in the constitutive documents, in stock companies shareholders are free to dispose of their stocks by virtue of statute. Only stock companies are allowed to issue equity securities subject to registration with the Center for Securities Market.[1]

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Overview of Joint Stock Companies

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