In what type of organization is the ownership commonly by stockholders with the potential for transferable shares?

A corporation is an organization where ownership is commonly held by stockholders, and one of the defining characteristics of a corporation is that its shares are transferable. This structure allows individuals to buy and sell shares, making it easier for the corporation to raise capital by attracting investors who can become part owners through their purchase of stock.

In a corporation, the stockholders have limited liability, meaning their personal assets are protected from the debts and liabilities of the corporation. This distinguishes corporations from sole proprietorships and partnerships, where owners typically face unlimited liability. Non-profit organizations, on the other hand, do not have stockholders in the same way and focus on a mission rather than profit distribution, thus lacking the characteristic of transferable shares.

The ability for shares to be transferred contributes to the liquidity of the corporation's ownership and enables a wider range of individuals to invest, further enhancing the corporation's ability to generate funds and expand its operations.