The Simplified Wealth of Nations of Adam Smith, Book 5, Chapter 1k: Private Copartneries vs Joint Stock Companies

Chapter 1k: Private Copartneries vs Joint Stock Companies

Private CopartneriesRegulated Companies (corporations)Joint Stock Companies
Capitaldraws little capitaldraws a lot of capitaldraws a lot of capital
Management of capitalDone by partnersDone by board of directorsDone by board of directors
Transfer sharesneed approval from companyno need approval
Exitingcan exit and demand paymentcannot demand payment for shares
Liabilityunlimitedlimited to value of shares


104 Joint stock companies, established by royal charter or by act of parliament, differ from regulated companies and private copartneries.
  1. 105 In a private copartnery, no partner without the consent of the company can:
Upon proper warning, each member may: In a joint stock company, on the contrary:
  1. 106 In a private co-partnery, each partner is bound for the debts of the company to the extent of his fortune.
107 The joint stock company's trade is always managed by a court of directors.

Next: Chapter 1l: Royal African Company