AG (Aktiengesellschaft)

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. Ltd. (Limited)

    An abbreviation of "limited," Ltd. is a suffix that ...
  2. GmbH

    GmbH is an abbreviation of the German phrase Gesellschaft mit ...
  3. Public Limited Company - PLC

    The standard legal designation of a company which has offered ...
  4. Limited Liability

    A type of liability that does not exceed the amount invested ...
  5. Private Company

    A company whose ownership is private. As a result, it does not ...
  6. Public Company

    A company that has issued securities through an initial public ...
Related Articles
  1. 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.
  2. Economics

    Understanding Limited Liability

    Limited liability is a legal concept that protects equity owners from personal losses due to their ownership interest in the company.
  3. Mutual Funds & ETFs

    Top 3 ETFS for Investing in Germany

    Discover why Germany is considered an economic powerhouse in the eurozone, and learn about the three ETFs that provide investors exposure to Germany’s economy.
  4. Investing Basics

    Why Do Companies Care About Their Stock Prices?

    Read on to learn more about the nature of stocks and the true meaning of ownership.
  5. Retirement

    IPO Basics: What Is An IPO?

    Selling Stock An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never ...
  6. Mutual Funds & ETFs

    The Top 3 ETFs to Track the DAX for 2016

    Learn about the top exchange-traded funds (ETFs) for investors who are seeking exposure to the DAX Index and the MSCI Germany Index.
  7. Term

    Advantages of Public Vs. Private Companies

    A privately held company is owned by its founder, management or a group of private investors.
  8. Investing Basics

    Why Companies Stay Private

    Many private companies prefer to stay private and find alternate sources of capital. Find out what firms have to gain by eschewing the windfall from a flashy IPO.
  9. Professionals

    Current Liability Basics

    CFA Level 1 - Current Liability Basics. Learn the basic types of liabilities, including definitions for current and long-term liabilities, warranties, taxes and vacation-pay.
  10. Investing Basics

    The Pros And Cons Of A Company Going Public

    Small companies looking for growth often use an initial public offering to raise capital. But going public brings both advantages and disadvantages.
RELATED FAQS
  1. What is the full phrase for 'GmbH', and what do the words in this acronym mean in ...

    In Germany, there are two types of companies: publicly traded and privately held. The acronym 'GmbH', which is written after ... Read Answer >>
  2. What are the requirements for being a Public Limited Company?

    Discover the various different requirements that a company must meet in order to be recognized and traded as a public limited ... Read Answer >>
  3. What advantages do corporations have over privately held companies?

    Learn about the chief advantages that publicly traded corporations have over other forms of business organizations, most ... Read Answer >>
  4. Is Germany a developed country?

    Find out how Germany fares in terms of economic strength and its standard of living, and understand why it is considered ... Read Answer >>
  5. What's the difference between publicly- and privately-held companies?

    Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by ... Read Answer >>
  6. How does privatization affect a company's shareholders?

    The most recognized transition between the private and public markets is an initial public offering (IPO). Through an IPO, ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center