AG (Aktiengesellschaft)

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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.

INVESTOPEDIA EXPLAINS '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.

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