Participation loan

Definition:

A large loan made by a group of lenders, that enables a borrower to obtain financing above the legal lending limit of an individual lender.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Managed float

Also known as "dirty" float, this is a system of floating exchange rates with central bank intervention to reduce currency fluctuations.

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