Limited company is a business organization in which each shareholder is responsible only for the shares he or she holds. A person owning stock worth $500 loses only that $500 investment if the company goes into debt. Creditors cannot sue the investor to recover money owed by the company. In the United Kingdom and many other nations, the word Limited (Ltd.) after a company’s name indicates that the liability of investors in the firm is limited to the amount each has invested.
