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Why Is Limited Liability Such an Important Aspect to Investors

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Why is limited liability such an important aspect to investors?


Definitions:

Junk Bonds

High-risk, high-yield bonds issued by companies with lower credit ratings than investment-grade bonds.

Speculative

Involving financial actions that carry a significant risk of losing all value but also hold the promise of substantial gains.

Ratings

Assessments or evaluations used to rank or score entities based on certain criteria, such as financial strength or quality.

Money Market Instruments

Financial instruments that provide liquidity and short-term financing in the money market, such as treasury bills, commercial paper, and certificates of deposit.

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