Covered interest arbitrage and Limited liability: Difference between pages
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The restriction of an investor's potential losses to the amount invested. Without the privilege of limitation, investors would have unlimited liability for a company's debts. | |||
The option of limited liability is one of the important advantages of incorporation. | |||
Less commonly in the commercial context, but often used for social or public interest bodies, a company member's liability may alternatively be limited to an amount guaranteed by the member. | |||
== See also == | == See also == | ||
* [[ | * [[Company]] | ||
* [[ | * [[Joint and several liability]] | ||
* [[ | * [[Legal personality]] | ||
* [[ | * [[Limited company]] | ||
[[Category: | [[Category:Corporate_finance]] | ||
[[Category: | [[Category:Compliance_and_audit]] | ||
Revision as of 23:19, 9 December 2016
The restriction of an investor's potential losses to the amount invested. Without the privilege of limitation, investors would have unlimited liability for a company's debts.
The option of limited liability is one of the important advantages of incorporation.
Less commonly in the commercial context, but often used for social or public interest bodies, a company member's liability may alternatively be limited to an amount guaranteed by the member.
