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Before adoption of the joint-stock corporation, an expensive venture such as the building of a merchant ship could be undertaken only by governments or by very wealthy individuals or families.

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Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.[1] Stock typically takes the form of shares of either common stock or preferred stock.

As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions.

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