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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Investment Limited Partnership  

Definition 1.

A group of individuals who pool their money for the purpose of investing. Profits from the investment, as well as tax deductions and other items, are usually then split according to each investor''s interest in the pool. Virtually all partnerships have a general partner, who is usually responsible for the day-to-day duties involved in running the partnership''s investment. The general partner usually has total liability, while the investors--known as limited partners--are liable only for the amount they put in.Although partnerships can be formed to invest in just about anything, they usually invest in real estate, oil and gas exploration and development, and equipment that is leased to others. Some partnerships are also designed to provide start-up capital for companies with promising products.
 
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