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.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
