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How are limited partnerships different from corporate stocks?
A limited partnership is a business entity established to buy real estate or other items formed by one or more general partners and one or more limited partners. Limited partners purchase units and receive a pro-rata share of the proceeds at the end of the partnership, which exists for a specific period, generally seven to 10 years. Furthermore, limited partners own the underlying assets held by the partnership.
In contrast, corporate stocks may be sold at any time, typically on a securities exchange or the over-the-counter market. Corporate shareholders own the stock, but not the company’s underlying assets.
