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Meanwhile, the limit of their liability extends only to the face value of their shareholding.

The concept of limited liability largely accounts for the success of this form of business organization.

Ownership of stock refers to a large number of privileges.Individual shareholders can sometimes stand for directorships within the company if a vacancy occurs, but that is uncommon.The shareholders are usually liable for any of the company debts that extend beyond the company's ability to pay.Some jurisdictions still provide the possibility of registering joint-stock companies without limited liability.In the United Kingdom and other countries that have adopted its model of company law, they are known as unlimited companies.

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Ordinary shares entitle the owner to a share in the company's net profit.

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