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Master Limited Partnership
(redirected from Publicly-Traded Partnership)

   Also found in: Wikipedia 0.01 sec.
Master limited partnership (MLP)

Master Limited Partnership
A limited partnership with ownership units that may be traded on an exchange. A limited partnership consists of a general partner, who manages the venture, and limited partners, who simply provide capital. A master limited partnership allows limited partners to buy and sell units of the venture as if they were shares in a publicly-traded company. Limited partners often receive cash distributions, which are similar to dividends, on a regular basis. This business form combines the tax advantages of a partnership, which does not pay tax on its profit, with the liquidity of a publicly-traded company. It is also called a publicly traded partnership.

master limited partnership (MLP)
A limited partnership that provides an investor with a direct interest in a group of assets (generally, oil and gas properties). Master limited partnership units trade publicly like stock and thus provide the investor significantly more liquidity than ordinary limited partnerships. See also roll-up.


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However, if the IRA had invested in a corporation or in a publicly-traded partnership that was taxed as a corporation, then there would be no UBTI.
Financial measures such as Distributable Cash are quantitative standards used by the investment community with respect to publicly-traded partnerships because the value of a partnership unit is in part measured by its yield (which in turn is based on the amount of cash distributions a partnership can pay to a unitholder).
Major financial institutions are unlikely to abandon their status as publicly-traded corporations to become publicly-traded partnerships because they would be faced with monumental tax payments that would serve as a powerful deterrent to converting to a publicly-traded partnership.
 
 
 
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