3c hapter - Index of

180 Locavesting
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As democratically run enterprises, co- ops tend to be very transparent
about their operations and the uses of funds.
In addition to fi nancial gain, an investment in a co- op pays dividends
to the community by fi lling unmet needs and generating
jobs and economic activity. Most co- ops set aside a small portion of
excess revenue to invest in local initiatives.
Cooperatives allow small producers, retailers, or buyers to band
together for greater economic clout, providing a counterbalance to
corporate economic power.
Any co-op member can run for a seat on the board.
Cons:
• Investments in a cooperative have limitations. Terms, including
share price and repurchase policies, are controlled by the co- op
board. And dividends are generally capped at 8 percent. As (typically)
unregistered securities, the shares cannot be traded, although
most co- ops will repurchase shares upon request.
• Most shares offered by co- ops have a fi xed price and do not appreciate
in value.
• Like any business investment, there is always the risk a cooperative
business will fail.
The Bottom Line: Co- ops provide a relatively safe, bond- like investment
that will reward beyond dividends.
For More Information:
• The National Cooperative Business Association provides research
and advocacy for the co- op sector. www.ncba.coop.
• The International Cooperative Alliance represents co- ops worldwide.
www.ica.coop/ al- ica.
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For Organic Valley investment information: www.organicvalley.coop/
about-us/invest/stock-prospectus/.