participation certificate
(PC)
Noun
1. A certificate of participation (COP) that gives its holder a share of the revenue from a facility leased to a municipality or other government entity.
2. A mortgage backed security sold by Freddie Mac to fund its purchases of mortgages.
3. A bearer instrument securitizing its holders the right to share in the distributable profits of the issuing company and in liquidation proceeds, it carrying no voting rights and commonly not entitling its holders to preemptive rights.
Synonym(s):
- profit participation certificate; revenue participation certificate.