Why do joint-stock companies greatly reduce investment risks and make cooperation between strangers possible? How to understand this sentence?

In a joint stock limited company, shareholders enjoy the company's profits and bear the company's losses according to their respective shareholding ratios, and such losses are limited, not infinite. In addition, the decision-making of a joint stock limited company is also based on the shareholding ratio, so that all shareholders will play a role in the company's operation.

The promoters meet the statutory qualifications and reach the quorum: the promoters' qualifications refer to the qualifications obtained by the promoters to establish a joint stock limited company according to law. The promoters of a joint stock limited company may be natural persons or legal persons, but more than half of the promoters must have their domicile in China.

The establishment of a joint stock limited company must reach a quorum, with at least two promoters and at least 200 promoters. When a state-owned enterprise is transformed into a joint stock limited company, the number of promoters may be less than 5, but it shall be established by way of offering. It is an international practice to set a minimum number of promoters for the establishment of a joint stock limited company.

Extended data:

Basic features:

(1) Limited by Share Ltd is an independent Economic legal;

(2) The number of shareholders of a joint stock limited company shall not be less than the quorum. For example, according to French regulations, the number of shareholders should be at least 7;

(3) The shareholders of a joint stock limited company shall bear limited liability for the debts of the company, and the liability limit shall be the number of shares payable by the shareholders;

(4) All the capital of a joint stock limited company is divided into equal shares, and funds are raised through public offering. Anyone can become a shareholder of the company after paying the shares, and there is no qualification restriction;

(5) The shares of the company can be freely transferred, but they cannot be withdrawn.

Baidu encyclopedia-co., ltd