Quick Definition

A Master Limited Partnership (MLP) is a type of investment vehicle that combines the tax benefits of a partnership with the liquidity of publicly traded stocks.

Examples

• 1An MLP that operates pipelines for transporting oil and gas, allowing investors to earn income from the fees charged for transport.
• 2A real estate MLP that owns and manages properties, distributing rental income to its partners.
• 3An MLP involved in the extraction and processing of natural resources, such as mining or timber, providing dividends from its operations.

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