Limited-liability instrument

A security, such as a call option, in which the owner can lose only the initial investment.

Limited-Liability Instrument

An investment vehicle in which the maximum amount one may lose is the initial amount of the investment. An example is a long position on an option contract. If one does not exercise the option, the most one may lose is the premium. Likewise, a limited partner in any partnership is only liable for the amount of his/her investment in the event of liquidation.

单词	limited-liability instrument
释义	Limited-liability instrument Limited-liability instrument A security, such as a call option, in which the owner can lose only the initial investment. Limited-Liability Instrument An investment vehicle in which the maximum amount one may lose is the initial amount of the investment. An example is a long position on an option contract. If one does not exercise the option, the most one may lose is the premium. Likewise, a limited partner in any partnership is only liable for the amount of his/her investment in the event of liquidation.
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