A Joint Stock Company is a type of business organization where ownership is divided into shares. These shares can be bought and sold by investors, allowing them to own a portion of the company. This structure enables the company to raise capital from a large number of shareholders, which can be used for expansion and operations. In a joint stock company, shareholders have limited liability, meaning they are only responsible for the company's debts up to the amount they invested. This encourages investment, as individuals can participate in the company's success without risking their personal assets beyond their shareholdings.