Business and Personal Finance Dictionary

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• COOPERATIVE OR CO-OP
  
  Refers to a form of real estate ownership. Here, the property is owned by shareholders. Each shareholder owns proprietary rights to a specific unit or dwelling while also owning an interest in the entire property. In many places, loans for such properties are effectively personal loans securitized by the shares of ownership. This is different from the usual real estate mortgage loan which is directly secured by the underlying real property. The term can also refer to a business arrangement whereby parties of similar interest combine their activities. One example of this would be a farmers cooperative to market grain or produce; operate and own storage facilities; or operate and own equipment.
  
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