An insurance company with capital divided into shares is known as what type of company?

A company is referred to as a "Stock Company" when it has its capital divided into shares, which can be bought and sold by shareholders. In this structure, the ownership and profits of the company are distributed among those who hold its stock. Shareholders typically elect a board of directors to manage the company's operations, and they receive dividends based on the company's profitability. This structure contrasts with a mutual company, where the policyholders are the owners, and profits are often returned to them through dividends or reduced premiums.

The terms "Foreign Company" and "Domestic Company" refer to the location of the company's incorporation relative to where it operates; they do not indicate whether the company is organized as a stock or mutual entity. Therefore, while they describe the jurisdictional aspects of an insurance company, they do not pertain to the fundamental structure of its ownership. Additionally, a mutual company does not have capital divided into shares as it is owned by the policyholders rather than stockholders.