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Re: PC:Re:Conrail Split
- Subject: Re: PC:Re:Conrail Split
- From: rhochste@xxxxxxxxxxxxxxx (Richard Hochstead)
- Date: Tue, 25 May 1999 09:58:29 -0700
Philip J. Kuhl wrote:
> LLC = Limited Liability Corporation, indeed.
> The concept is that the liability of any investor in the corporation is
> limited to the maximum amount of his investment in the company in case of a
> liability lawsuit.
> For example: You own $100 stock in XYZ Corporation, LLC. XYZ Corporation
> is worth one million dollars. XYZ loses a liability lawsuit and has to pay
> nine hundred billion dollars (nasty lawyers! <grin>). Obviously, XYZ
> doesn't have the money to pay, so it goes out of business and its assets are
> sold off to help pay the debt, but its assets are nowhere near enough. The
> plaintiffs in the lawsuit might decide to go after you for part of the rest
> of the money they are owned, since you are a part owner of XYZ. But, since
> XYZ is an LLC, your liability is limited to the $100 you had invested in XYZ
> stock. Your stock is worthless so you lost your $100 investment, but you
> have no further liability.
> That's what an LLC is.
> PhilWhat is the difference between an LLC and an ordinary common stock which
would be listed on the New York Stock Exchange, for example Penn Central
itself? Also, I heard that there is an excellent train museum near
Wilmington, Delaware but nobody can give me any other information. HELP!
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