Risk Participation

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Dictionary Says

Definition of 'Risk Participation'

A type of off-balance-sheet transaction in which a bank sells its exposure to a contingent obligation, such as a banker's acceptance, to another financial institution. Risk participation allows banks to reduce their exposure to delinquencies, foreclosures, bankruptcies and company failures.
Investopedia Says

Investopedia explains 'Risk Participation'

Risk participation agreements are often used in international trade, but these agreements are risky because the participant has no contractual relationship with the borrower. On the upside, these transactions can help banks generate revenue streams and diversify their income sources.
Search results for

'Risk Participation'

  • Series 7 Study Guide - Risk and Tax Considerations - Investment ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/default-liquidity-political-risk.asp
    ... very little liquidity risk. Shares in direct participation plans can have
    a very high liquidity risk. Political Risk Although this ...

  • Series 7 Study Guide - Equities - Direct Participation Programs ...

    http://www.investopedia.com/exam-guide/series-7/equities/direct-participation-program.asp
    ... Equities - Direct Participation Programs (DPPs). There is another class of equity
    ownership that does not involve exchange-traded stock at all. ...

  • Investors: You Are Responsible For Your Investments

    http://www.investopedia.com/articles/pf/09/customer-participation-in-investment.asp
    ... to some degree, but they will not do so unsolicited and the information and
    participation isn't ... For more insight, check out What Is Your Risk Tolerance?) There ...

  • Series 7 Study Guide - Risk and Tax Considerations - Tax ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/tax-considerations.asp
    ... Introduction; 2.2 Investment Risk (Part 1 of 2); 2.3 Investment Risk (Part 2 ... 3.10
    Direct Participation Programs (DPPs); 3.11 Special Products. 4. Debt Securities ...

  • Series 7 Study Guide - Risk and Tax Considerations - Wash Sales ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/wash-sale-substantially-identical.asp
    ... Introduction; 2.2 Investment Risk (Part 1 of 2); 2.3 Investment Risk (Part 2 ... 3.10
    Direct Participation Programs (DPPs); 3.11 Special Products. 4. Debt Securities ...

  • Series 7 Study Guide - Risk and Tax Considerations - Income and ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/income-taxation.asp
    ... Introduction; 2.2 Investment Risk (Part 1 of 2); 2.3 Investment Risk (Part 2 ... 3.10
    Direct Participation Programs (DPPs); 3.11 Special Products. 4. Debt Securities ...

  • Series 7 Study Guide - Risk and Tax Considerations - Foreign ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/foreign-securities-taxation.asp
    ... Introduction; 2.2 Investment Risk (Part 1 of 2); 2.3 Investment Risk (Part 2 ... 3.10
    Direct Participation Programs (DPPs); 3.11 Special Products. 4. Debt Securities ...

  • Series 7 Study Guide - Risk and Tax Considerations - Stock ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/stock-classification.asp
    ... Introduction; 2.2 Investment Risk (Part 1 of 2); 2.3 Investment Risk (Part 2 ... 3.10
    Direct Participation Programs (DPPs); 3.11 Special Products. 4. Debt Securities ...

  • Series 7 Study Guide - Determining Customer Objectives ...

    http://www.investopedia.com/exam-guide/series-7/customer-objectives/risk-tolerance.asp
    ... Introduction; 2.2 Investment Risk (Part 1 of 2); 2.3 Investment Risk (Part 2 ... 3.10
    Direct Participation Programs (DPPs); 3.11 Special Products. 4. Debt Securities ...

  • Series 7 Study Guide - Risk and Tax Considerations - Investment ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/inflation-capital-interest-risk.asp
    ... Risk and Tax Considerations - Investment Risk (Part 1 of 2). Inflationary ...
    It does not refer to the risk of inflation itself. The ...

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