In one sentenceA company whose capital is divided into tradable shares of equal value, in which a shareholder is liable for its debts only up to the value of their shares.
Simply put
It suits large projects that need broad capital, and may be listed, with its shares traded on the stock market, or unlisted. It is run by a board of directors elected by the general assembly of shareholders.
Disclosure and governance requirements are higher than for other forms. The minimum capital, number of founders, and other conditions are in the Companies Law and its regulations.
Example
A factory expanded and wanted to raise money from many investors without each of them running the factory, so it converted into a joint stock company: each investor received shares in proportion to what they paid, and the shareholders choose the board of directors at the general assembly.
Don't confuse it with
Simplified joint stock companyThe simplified form has lighter incorporation and management procedures, and may be founded by a single person.