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What does limited-liability mean?

Looking for the meaning or definition of the word limited-liability? Here's what it means.

Adjective
  1. (law) Of a business entity, having liability for legal claims that is limited to the assets of the entity itself, and which therefore does not reach the assets of the individual owners/investors of the company.
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Examples
That same month, momentously, the Fed directly bailed out Bear Stearns through a limited-liability company called Maiden Lane, which was set up under the New York Fed.
The new limited-liability laws made limited liability mandatory for all corporations.

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