The company's management may use this technique to retain control by converting a company from public to private ownership. Investors can participate in an LBO through either the purchase of the debt instruments or through the acquisition of shares in the target company. A limit order allows you to specify a maximum or minimum price you will accept for a security. Some investors feel that the risk of not receiving an execution for a limit order is more acceptable than the risk of unlimited price exposure for a market order. A limited partnership is an organization that is comprised of a general partner, who typically manages the partnership, and limited partners, who invest money in the partnership but have limited liability.
Limited partners receive income, capital gains and tax benefits from the partnership.
In compensation for their management of the partnership, general partners receive a percentage of the partnership's capital gains and income. It does not include real estate or business equity, personal property, expected inheritances or funds earmarked for other purposes. A load fund is a mutual fund that requires an investor to pay a commission for buying or selling shares in the fund. The former is charged to the investor when the fund is purchased, and the latter is paid by the investor when the fund is sold. This term refers to the period following an initial public offering when the lead underwriter restricts company insiders, such as officers and directors, from selling their shares.