Participation (ownership)
Topic: Finance
From Handwiki - Reading time: 1 minIn finance, "participation" is an ownership interest in a mortgage or other loan. In particular, loan participation is a cooperation of multiple lenders to issue a loan (known as participation loan) to one borrower. This is usually done in order to reduce individual risks of the lenders.
The term is also used as a synonym to profit sharing, an incentive whereby employees of a company receive a share of the profits of the company.
References
- Black's Law Dictionary
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Original source: https://handwiki.org/wiki/Participation (ownership)
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Original source: https://handwiki.org/wiki/Participation (ownership)
Status: article is cached
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