Participation (ownership)
 |
Look up participation in Wiktionary, the free dictionary. |
In 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
This article is issued from Wikipedia - version of the 5/29/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.