A joint-stock company is a type of business organization where multiple investors contribute capital by purchasing shares. Each shareholder owns a portion of the company and shares in its profits and losses. This structure allows for the pooling of resources, making it easier to fund large projects and expand operations. These companies are typically managed by a board of directors, who make decisions on behalf of the shareholders. The concept of joint-stock companies emerged in the late 16th century and played a significant role in the development of global trade, particularly with entities like the British East India Company.