Re: PC:Re:Conrail Split

["Philip J. Kuhl" <pjkuhl@xxxxxxxxx>]

LLC = Limited Liability Corporation, indeed.

The concept is that the liability of any investor in the corporation is
limited to the maximum amount of his investment in the company in case of a
liability lawsuit.

For example:  You own $100 stock in XYZ Corporation, LLC.  XYZ Corporation
is worth one million dollars.  XYZ loses a liability lawsuit and has to pay
nine hundred billion dollars (nasty lawyers! <grin>).  Obviously, XYZ
doesn't have the money to pay, so it goes out of business and its assets are
sold off to help pay the debt, but its assets are nowhere near enough.  The
plaintiffs in the lawsuit might decide to go after you for part of the rest
of the money they are owned, since you are a part owner of XYZ.  But, since
XYZ is an LLC, your liability is limited to the $100 you had invested in XYZ
stock.  Your stock is worthless so you lost your $100 investment, but you
have no further liability.

That's what an LLC is.

Phil