A stock company is a type of business organization that raises capital by issuing shares of stock to investors. Each share represents a small ownership stake in the company, allowing shareholders to participate in its profits and losses. Stock companies can be publicly traded on stock exchanges or privately held, depending on whether their shares are available to the general public. Shareholders in a stock company have the right to vote on important company matters, such as electing the board of directors. The company is managed by executives who are responsible for its day-to-day operations, while shareholders benefit from potential dividends and capital appreciation as the company grows.