What does the limited liability of the owners of stock in a corporation mean?

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Matilda Osborn

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20 July, 10:21

What does the limited liability of the owners of stock in a corporation mean?

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Faith Frank · Answer 1

The limited liability of the owners of stock in a corporation mean that the stockholders of a corporation can lose only what they have invested in the corporation. they have limited liability in which it mean that the shareholder are restricted by shares.

Allen · Answer 2

The answer is that the the stockholders of a corporation can lose only what they have invested in the corporation. A shareholder of a company restricted by shares has limited liability. This means that the shareholder is not liable for the acts and omissions of the company. The liability of the shareholder is limited to the nominal value of its shares.