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| Limited Partnership |
A Limited Partnership is a business entity that consists of General and Limited Partners. The General Partner manages the business and assumes unlimited liability for the organization's legal debts and obligations. Meanwhile, the Limited Partner has no management authority or participation in the business' day-to-day operations, and his or her liability is limited to the amount of investment.
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In the past, Limited Partnerships (LPs) were organized primarily for real estate ventures and businesses involved in the oil and gas industry. However, their use has now spread into a host of other business lines, including equipment leasing and movie & theater productions. Since 1974, over $100 billion has been invested in LPs.
PUBLIC vs. PRIVATE LPs
If a Limited Partnership has registered with the Securities and Exchange
Commission (SEC) and trades on an exchange, then it is considered to be
"publicly traded."
Unlisted, Non Exchange Traded Limited
Partnership:
If a Limited Partnership has filed a registration statement with the Securities
and Exchange Commission, currently files periodic reports (such as the 10k, 10q
reports), but does not trade on an exchange, then the security is a "Public
Reporting" company, rather than a "Publicly Traded" one.
Private Company:
A privately held Limited Partnership is not subject to public disclosure and is
not traded on a public market.
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