Participating preferred stock

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Participating preferred stock is stock that entitles its holders not only to a fixed dividend but also to an opportunity to share in additional dividends with common stockholders.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Participating preferred stock. Stock that entitles its holders not only to a fixed dividend but also to an opportunity to share in additional dividends with common stockholders.

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