LIMITED LIABILITY
A legal protection which does not go beyond the amount invested in a company or partnership. This liability is considered as one of the biggest advantages of investing in publicly listed companies. Investors have narrow exposure to financial risks the company may face, in the event firm declares insolvency or racks up liabilities, usually in millions or billions. A shareholder may partake in the company’s growth but the liability is limited to the amount he or she invested in that firm.
In a partnership, limited partners have restricted liability, while the overall partner has unlimited liability. Also called limited personal liability, it safeguard the investor's (or partner's) own assets from the risk of being seized in order to satisfy creditor claims in the event of a company’s (or partnership’s) bankruptcy.
POPULAR TERMS
Council of Economic Advisors - CEA
Branch Office
Rump
Catalyst
Federal Subsidy Recapture
POPULAR ARTICLE
SEE FOREX TUTORIAL
Student Loans: Consolidating Federal Loans
Buying a Home: Selecting a House Suitable for Your Needs
Macroeconomics: Basic Concepts
Digesting Financial Statements: Pension Plans
A Guide to Your Personal Income Tax: Papers
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 11:00 | Ifo Business Climate Index | Jan | |
| 11:00 | Ifo Current Assessment | Jan | |
| 11:00 | IFO - Expectations | Jan | |
| 15:30 | Durable Goods Orders | Nov | |
| 16:00 | NBB Business Climate | Jan | |
| 01:50 | Corporate Service Price Index | Dec | |
| 02:01 | BRC Shop Price Index | Jan | |
| 02:30 | NAB Business Confidence | Dec | |
| 04:00 | Credit Card Spending | Dec |
