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Limited liability

• A feature of common equity meaning that investors cannot lose more than they have invested in the firm.

• Limitation of possible loss to what has already been invested.

 
 Embedded terms in definition
 Common equity
Equity
Firm
 
 Related Terms
 Asset and liability management
Contingent pension liability
Cost of limited partner capital
Liability
Liability funding strategies
Liability swap
Limited liability instrument
Limited partner
Limited partnership
Limited tax general obligation bond
Master limited partnership
Real estate limited partnership
Unlimited liability

<< Limitation on subsidiary borrowing Limited liability instrument >>

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