Limited Partnership Unit

An ownership unit in a publicly traded limited partnership, or master limited partnership (MLP). This trust gives the unit holder a stake in the income generated by the partnership company. A MLP often distributes all available cash flow from operations to unit holders after the deduction of maintenance capital.

Also referred to as "master limited partnership units" and "limited partner units".

Partnership units are beneficial to investors because the MLP allows the company's cash distributions to circumvent the double taxation that would normally be imposed, which generally means greater distributions for partnership unit holders. In an MLP, the cash distributions of the company are taxed only at the unit holder level and not at a corporate level. Another benefit of this type of investment is that because the units are publicly traded, there is much more liquidity for investors compared to a traditional partnership.

In most cases, these investments are eligible as IRA and RRSP investments.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Atomic Energy of Canada Limited — Infobox Company company name = Atomic Energy of Canada Limited company company type = Crown Corporation foundation = 1952|f location = Mississauga, Ontario key people = Hugh MacDiarmid, President and CEO industry = Nuclear products = Nuclear… …   Wikipedia

  • City Developments Limited — Republic Plaza is the tallest building in Singapore, a property of City Developments Limited. Singapore s property pioneer since 1963, City Developments Limited (CDL) SGX: C09 is a listed international property and hotel conglomerate involved in …   Wikipedia

  • MCB Bank Limited — MCB Bank Ltd. Type Public (KSE:[2]) Industry Banking Capital Markets Founded …   Wikipedia

  • Coast & Country Housing Limited — Industry Social Housing Founded 2001 Headquarters NE England Website cch online.org.uk Coast and Country is a Registered Housing Provider located in the north of England and established in 2001. It took over the ownership …   Wikipedia

  • Rolls-Royce Limited — For the present day company see Rolls Royce plc. For other uses, see Rolls Royce (disambiguation). Infobox Defunct Company company name = Rolls Royce Limited company fate = Nationalised / split in 1973 successor = Rolls Royce plc (1987) Rolls… …   Wikipedia

  • Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… …   Wikipedia

  • Income trust — An income trust is an investment trust that holds income producing assets. The term also designates a legal entity, capital structure and ownership vehicle for certain assets or businesses. Its shares or trust units are traded on securities… …   Wikipedia

  • Types of business entity — Companies law Company  …   Wikipedia

  • Bruce Power — Infobox Company company name = Bruce Power Limited Partnership company company type = Limited liability partnership foundation = Tiverton, Ontario (2001) location = Tiverton, Ontario, Canada key people = Duncan Hawthorne President CEO industry =… …   Wikipedia

  • Tipos de entidad empresarial — Hay muchos tipos de entidades empresariales definidos en los sistemas legales de varios países. Estos incluyen corporaciones, asociaciones, unipersonales y otros tipos especializados de organización. Algunos de estos tipos se enumeran a… …   Wikipedia Español

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.