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Friday, 03/22/2019 9:59:09 AM

Friday, March 22, 2019 9:59:09 AM

Post# of 8177
NGL is a MLP, as such, here's what a Master Limited Partnership is:

MLP Defined

A good example of this structure is Linn Energy Inc., which has both an MLP (LINE) and a corporation that owns an interest in the MLP (LNCO). Investors then have the option to choose, for tax purposes, how they would like to receive the income the company generates.

I would suggest you do some research on Linn Energy so that you can better understand risk!

Like a partnership, an MLP issues units instead of shares. However, these units are often traded on national stock exchanges, offering significant liquidity — a liquidity that traditional partnerships do not offer. Because these publicly traded units are not shares of stock, those who invest in MLPs are commonly referred to as unitholders, rather than shareholders. Those who buy into an MLP are also called limited partners; they are allocated a share of the MLP's income, deductions, losses and credits.




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