The investors in an investor-owned corporation have voting privileges according to the quantity of stock they own. A Cooperative physically resembles an investor-owned corporation in that it provides similar services, employs personnel in similar jobs, and charges similar fees for its service or product. Rather than existing to make a return on investment for shareholders, a cooperative exists to provide economic services to its members. Membership in the cooperative is open to only those who purchase the cooperative's product. A Cooperative raises capital from its members through member fees and sale of the product to the members.
Cooperatives also supplement member contributed capital by borrowing from financial institutions.
Select this link for a detailed explanation of Capital Credits. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political, or religious discrimination. Men and women serving as elected representatives are accountable to the membership. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership.