1. Joint-stock companies can quickly realize capital concentration. The capital of a joint-stock company is divided into several shares, which are subscribed by the investors, who can subscribe for one or several shares according to their own economic ability. In this way, a large amount of investment is broken down into parts, which enables more people to invest and greatly speeds up the investment.
2. Joint-stock companies can meet the requirements of mass production in modern society for enterprise organizational forms. Socialized mass production requires higher organizational forms of enterprises, and joint-stock companies can meet these requirements. This is because joint-stock companies can raise funds through IPO and concentrate huge capital to meet the demand for funds for large-scale production; At the same time, the ownership of joint-stock companies belongs to all shareholders, and various management institutions such as shareholders' meeting, board of directors and board of supervisors are set up to separate ownership and management rights, and joint-stock companies have become the most important enterprise organization form in modern economy.