Participation certificates


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 ?
If you are the holder of a participation certificate, you have heard these words.
The students all received participation certificates signed by the Hariri Foundation and the UWC when the workshop was concluded.
Shortly after a September 4 Extraordinary Shareholders Meeting, the company announced that it commenced a global public offering of 1.2 billion of its Ordinary Participation Certificates (CPOs), directly or in the form of American Depositary Shares (ADSs), plus up to an additional 180 million CPOs to cover over-allotments.
Certificates and trophies will also be presented to students who scored the highest marks in each grade, while participation certificates will also be distributed.
In a closed rights issue to DMI's existing 7,500 holders of EPCs from across the world, including the Middle East, Asia, Africa and Europe, the capital raising was approved by an extraordinary general meeting of DMI's equity participation certificates holders, the group said in a statement.
After passage of the AJCA, certain banks and bank and financial holding companies do not have to include in passive investment income (PII), interest income and dividends on assets required to be held by the bank or holding company (e.g., Federal Reserve, Federal Home Loan Bank stock or participation certificates).
FREDDIE MAC HAS PURCHASED A $6 MILLION portfolio of multifamily mortgages from Washington Mutual Bank, Seattle, and Washington Mutual Bank, Seattle (WaMu, collectively) in exchange for Freddie Mac participation certificates (PCs).
2dmkt.com, a unique business-to-business e-commerce enterprise, is successfully operating an online marketplace for the estimated $500 billion of commercial mortgage loans and participation certificates traded in the global secondary market.
and swapped for Freddie Mac participation certificates which GMAC then sold though its trading desk.
Instead of becoming registered shareholders, employees receive participation certificates and regular account statements.
Mortgage securities, such as participation certificates and CMOs issued by FNMA or FHLMC, are risk weighted at 20 percent because they are government-sponsored agencies that carry only the implied backing of the United States.
Participation certificates. The MTM perspective assisted Freddie Mac in several instances because its GAAP balance sheet is quite unusual.

Full browser ?