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> but they raise money by selling stock How does this work with credit unions? The one I joined I had to “buy a share” for 5$ and keep that minimum of one shar
by vuln 4y ago
> but they raise money by selling stock
How does this work with credit unions? The one I joined I had to “buy a share” for 5$ and keep that minimum of one share (5$) to keep my account active. The credit union is not publicly traded so the shareholders are the account holders.
- skybrian 4y agoGood question. Looks like technically, you are a shareholder and get dividends instead of interest for a "share draft account" [1] which is backed by share insurance. [2] I don't understand how that can work as risk capital. Maybe it just isn't. [1] https://www.investopedia.com/terms/s/share-draft.asp https://www.investopedia.com/terms/s/share-draft.asp [2] https://www.ncua.gov/support-services/share-insurance-fund https://www.ncua.gov/support-services/share-insurance-fund