Participation certificates


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Participation certificates (PC)

Used in the context of general equities. Investments representing an interest in a pool of funds or in other instruments, such as foreign securities, that allow participation in the rise or fall of a security or group of securities.

Participation Certificate

1. An alternative to a government or municipal bond in which an investor buys a share in the improvements or infrastructure the government entity intends to fund. This contrasts with a bond, in which the investor loans the government or municipality money in order to make these improvements. This is used primarily when the government or municipality has a charter-mandated debt ceiling. In the United States the only entities issuing or guaranteeing participation certificates are Freddie Mac, Fannie Mae, Ginnie Mae, and Sallie Mae.

2. See: International Depository Receipt (IDR).
References in periodicals archive ?
government-sponsored agency securities, for example, FHLMC participation certificates, that qualify for a risk weight of 20 percent and conventional mortgage loans that qualify for a risk weight of 50 percent, then the security would receive the 50 percent risk weight.
The School District of the City of Independence, Jackson County (MO), $2,785,000 insured taxable lease participation certificates, series 2009B
The presentation left no doubt in the participants that AvW is obliged to buy the participation certificates back, the verdict of the Klagenfurt court reads.
Gains (losses) on "Guarantee asset for Participation Certificates, at fair value" were ($685) million for the first six months of 2005, down from net fair value losses of ($72) million for the first six months of 2004.
Federal Reserve Bank stock, Federal Home Loan Bank stock, Federal Agricultural Mortgage Bank stock or participation certificates issued by a Federal Intermediate Credit Bank that represent nonvoting stock in the bank).
State of Rhode Island & Providence Plantations state lease participation certificates upgraded to 'AA-' from 'A+'.
The ambassador lauded the performance of the contestants and conferred participation certificates to all students, while the winners were awarded the prizes.
All the participants and attendees will be awarded appreciation and participation certificates.
9'297 Cementia bearer shares and 27'228 Cementia participation certificates were tendered in the public exchange offer initiated by Lafarge.
The employer corporation planned to secure the benefits by transferring to the participants nonnegotiable, nontransferable participation certificates, which were to be secured by irrevocable standby letters of credit.
He lauded the performance of the contestants and gave away participation certificates to all students, while the winners were awarded with prizes.
DCR) has assigned the following preliminary ratings to the certificates issued by Citibank Credit Card Master Trust Series 1999-7: $1 billion Class A credit card participation certificates are rated 'AAA' (Triple-A) and the $64 million Class B credit card participation certificates are rated 'A+' (Single-A-Plus).