AG (Aktiengesellschaft)

AAA

DEFINITION of 'AG (Aktiengesellschaft)'

AG is an abbreviation of Aktiengesellschaft, which is a German term for a public limited company — a company whose shares are offered to the general public and traded on a public stock exchange, and whose shareholders' liability is limited to their investment. The shareholders are not responsible for the company's debts and their personal assets are protected in case the company becomes insolvent.

BREAKING DOWN 'AG (Aktiengesellschaft)'

German and Austrian law requires companies to specify their liability limits in their name. The suffix AG (an equivalent of the English Plc.) is used after names of companies in Germany, Austria, Switzerland and Luxembourg.

RELATED TERMS
  1. Corporate Social Responsibility

    Corporate initiative to assess and take responsibility for the ...
  2. Corporate Culture

    The beliefs and behaviors that determine how a company's employees ...
  3. Dividend Payout Ratio

    The percentage of earnings paid to shareholders in dividends. ...
  4. Organizational Behavior - OB

    Organizational Behavior (OB) is the study of the way people interact ...
  5. Outstanding Shares

    A company's stock currently held by all its shareholders, including ...
  6. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
Related Articles
  1. Economics

    Should Germany Leave The Eurozone?

    Germany may be better off leaving the eurozone behind, instead of continously propping up struggling economies with little return.
  2. Economics

    Why Germany Is The Economic Powerhouse Of The Eurozone

    There's little denying that Germany is the boss of the eurozone. Discover what sets it apart from the rest of Europe.
  3. Economics

    Explaining the Balanced Scorecard

    A balanced scorecard is a metric that measures a business’ performance.
  4. Investing Basics

    What is a Public Company?

    A public company has sold stock to the public through an initial public offering (IPO) and that stock is currently traded on a public stock exchange.
  5. Investing Basics

    What's a Holding Company?

    A holding company is a corporation that owns enough voting stock in another company to control its management and policies.
  6. Economics

    What Does Human Resources Do?

    Human resources (HR) is the department within a company that handles all matters relating to employment.
  7. Professionals

    8 Justifications For Sky-high CEO Salaries

    Why are CEO salaries so astronomically high? There may be more to the story than you think.
  8. Economics

    Is The EU Holding Germany Back?

    As Germany agrees to initiate bailout talks with Greece once again, could all of the EU's economic turmoil result in Germany being better off alone?
  9. Term

    What is a Feasibility Study?

    A feasibility study analyzes a company’s ability to complete a project.
  10. Taxes

    Explaining Double Taxation

    Double taxation refers to income taxes being imposed twice on the same source of earned income.
RELATED FAQS
  1. In what instances does overhead qualify for certain tax allowances?

    Businesses are just as keen as anyone else to keep their tax burdens low by any means possible. Overhead expenses often qualify ... Read Full Answer >>
  2. When might an abatement be granted by the IRS?

    The Internal Revenue Service (IRS) frequently imposes interest and penalties due to the late filing of a tax return, underpayment ... Read Full Answer >>
  3. How is residual value of assets taxed?

    Residual value has several meanings, each with its own potential tax consequences. Tax laws vary between jurisdictions, so ... Read Full Answer >>
  4. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  5. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
  6. How does the effective tax rate for an individual differ from that of a corporation?

    There is not much difference between the method of calculating or meaning behind the effective tax rate for individuals on ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  2. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  3. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  4. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  5. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  6. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!