6 Aug 2014

Definition of ‘Ltd. (Limited)’

An abbreviation of “limited,” Ltd. is a suffix that follows the name of a company, indicating that it’s a private limited company – a kind of incorporation available under British and Irish, and some Commonwealth countries laws. In a limited company, the shareholders’ liability is limited to the capital they’d originally invested. If such company becomes insolvent, the shareholders personal assets remain protected. Shares in a private limited company are not offered to the general public (distinguishing it from a public limited company – plc.)

Investopedia explains ‘Ltd. (Limited)’

Since shares in a private limited company can’t be offered to the general public, they also can’t be traded on a public stock exchange. But private companies have less strict disclosure requirements than public ones, and so most companies remain private.

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