The abbreviation "ltd" stands for "limited," which is often used in the context of businesses. When a company is designated as "ltd," it means that the liability of its owners (shareholders) is limited to the amount they invested in the company. This structure provides protection to the owners' personal assets if the company faces financial difficulties.
The term "limited" comes from the Latin word "limitare," meaning "to bound or to define." It was introduced into business terminology to indicate that the liability of shareholders is confined to their investment in the company.