Limited Partnership

An entity formed under state legislation that enables large numbers of investors to become limited partners of a partnership, owning an economic interest in the entity?s assets, but sharing in its liabilities only to the extent of their initial investment.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.