A master limited partnership (MLP) is a for-profit firm that is publicly traded as a limited partnership. This business structure is similar to that of a limited partnership, except the shares are exchanged on stock markets. Simply put, MLPs provide tax advantages similar to limited partnerships and provide liquidity similar to publicly listed securities.
MLPs are low-risk investments since they help generate steady income by consistent cash distributions to investors. The stock market has been under immense pressure lately due to Federal Reserve’s interest rate hikes to control the multi-decade high inflation.
