Participating Preferred Stock

Participating Preferred Stock

In addition to fixed-rate dividend payments, owners of participating preferred stock have the opportunity to participate directly in corporate profits. Preferred stock XYZ 5% participating to 10% means that a shareholder receives a 5% fixed-rate dividend annually; and, if the company had a particularly profitable year, the participating preferred shareholder may receive up to 5% in additional interest for the year.

See also:

• Cumulative Preferred Stock
• Callable Preferred Stock
• Convertible Preferred Stock
• Common Stock
• Stock

‹‹ Back to Securities & Investments Topics