diff --git a/doc/README.md b/doc/README.md
index 68262b0..fae4b01 100644
--- a/doc/README.md
+++ b/doc/README.md
@@ -18,7 +18,7 @@ RxLua
   - [of](#ofvalues)
   - [fromRange](#fromrangeinitial-limit-step)
   - [fromTable](#fromtabletable-iterator-keys)
-  - [fromCoroutine](#fromcoroutinecoroutine)
+  - [fromCoroutine](#fromcoroutinefn)
   - [fromFileByLine](#fromfilebylinefilename)
   - [defer](#deferfactory)
   - [replicate](#replicatevalue-count)
@@ -250,13 +250,13 @@ Creates an Observable that produces values from a table.
 
 ---
 
-#### `.fromCoroutine(coroutine)`
+#### `.fromCoroutine(fn)`
 
 Creates an Observable that produces values when the specified coroutine yields.
 
 | Name | Type | Default | Description |
 |------|------|---------|-------------|
-| `coroutine` | thread |  |  |
+| `fn` | thread|function |  | A coroutine or function to use to generate values.  Note that if a coroutine is used, the values it yields will be shared by all subscribed Observers (influenced by the Scheduler), whereas a new coroutine will be created for each Observer when a function is used. |
 
 ---
 
diff --git a/rx.lua b/rx.lua
index 633113d..941f009 100644
--- a/rx.lua
+++ b/rx.lua
@@ -197,11 +197,14 @@ function Observable.fromTable(t, iterator, keys)
 end
 
 --- Creates an Observable that produces values when the specified coroutine yields.
--- @arg {thread} coroutine
+-- @arg {thread|function} fn - A coroutine or function to use to generate values.  Note that if a
+--                             coroutine is used, the values it yields will be shared by all
+--                             subscribed Observers (influenced by the Scheduler), whereas a new
+--                             coroutine will be created for each Observer when a function is used.
 -- @returns {Observable}
-function Observable.fromCoroutine(thread, scheduler)
-  thread = type(thread) == 'function' and coroutine.create(thread) or thread
+function Observable.fromCoroutine(fn, scheduler)
   return Observable.create(function(observer)
+    local thread = type(fn) == 'function' and coroutine.create(fn) or fn
     return scheduler:schedule(function()
       while not observer.stopped do
         local success, value = coroutine.resume(thread)
diff --git a/src/observable.lua b/src/observable.lua
index bd0b4da..7b7d27f 100644
--- a/src/observable.lua
+++ b/src/observable.lua
@@ -102,11 +102,14 @@ function Observable.fromTable(t, iterator, keys)
 end
 
 --- Creates an Observable that produces values when the specified coroutine yields.
--- @arg {thread} coroutine
+-- @arg {thread|function} fn - A coroutine or function to use to generate values.  Note that if a
+--                             coroutine is used, the values it yields will be shared by all
+--                             subscribed Observers (influenced by the Scheduler), whereas a new
+--                             coroutine will be created for each Observer when a function is used.
 -- @returns {Observable}
-function Observable.fromCoroutine(thread, scheduler)
-  thread = type(thread) == 'function' and coroutine.create(thread) or thread
+function Observable.fromCoroutine(fn, scheduler)
   return Observable.create(function(observer)
+    local thread = type(fn) == 'function' and coroutine.create(fn) or fn
     return scheduler:schedule(function()
       while not observer.stopped do
         local success, value = coroutine.resume(thread)
diff --git a/tests/observable.lua b/tests/observable.lua
index 7cfcedf..750512f 100644
--- a/tests/observable.lua
+++ b/tests/observable.lua
@@ -177,6 +177,40 @@ describe('Observable', function()
       until Rx.scheduler:isEmpty()
       expect(onNext).to.equal({{1}, {2}, {3}})
     end)
+
+    it('shares values among Observers when the first argument is a coroutine', function()
+      local coroutine = coroutine.create(function()
+        coroutine.yield(1)
+        coroutine.yield(2)
+        return 3
+      end)
+
+      Rx.scheduler = Rx.CooperativeScheduler.create()
+      local observable = Rx.Observable.fromCoroutine(coroutine, Rx.scheduler)
+      local onNextA = observableSpy(observable)
+      local onNextB = observableSpy(observable)
+      repeat Rx.scheduler:update()
+      until Rx.scheduler:isEmpty()
+      expect(onNextA).to.equal({{2}})
+      expect(onNextB).to.equal({{1}, {3}})
+    end)
+
+    it('uses a unique coroutine for each Observer when the first argument is a function', function()
+      local coroutine = function()
+        coroutine.yield(1)
+        coroutine.yield(2)
+        return 3
+      end
+
+      Rx.scheduler = Rx.CooperativeScheduler.create()
+      local observable = Rx.Observable.fromCoroutine(coroutine, Rx.scheduler)
+      local onNextA = observableSpy(observable)
+      local onNextB = observableSpy(observable)
+      repeat Rx.scheduler:update()
+      until Rx.scheduler:isEmpty()
+      expect(onNextA).to.equal({{1}, {2}, {3}})
+      expect(onNextB).to.equal({{1}, {2}, {3}})
+    end)
   end)
 
   describe('defer', function()