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What Is a Liability?

By Jason Hall – Updated Dec 16, 2024 at 1:10 PM

Key Points

  • Liabilities are what a company owes, not inherently negative; understanding them aids in investment decisions.
  • Assets should offset liabilities; how they balance can indicate potential economic growth.
  • Different industries have varied liability exposures; knowing this can inform better investment choices.
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About the Author

Jason Hall
Jason Hall is a contributing Motley Fool stock market analyst with more than a decade of experience writing about dividend stocks and long-term investing. He has been with the company since 2012 and previously spent over 10 years in technical sales in the printing and information services industry. Jason also founded and operated a small food manufacturing business.
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