Participating Preferred Stock (redirected from Participating Preference Share)

Participating Preferred Stock

A type of preferred stock that, under certain conditions, gives holders the right to receive earnings payouts over and above the specified dividend rate.

Notes:

Participating preferred stock is rarely issued, but one way in which it is used is as a poison pill. In this case, current shareholders are issued stock that gives them the right to buy more shares at a bargain price in the event of an unwanted takeover bid.

See also: Convertible Preferred Stock, Poison Pill, Preferred Stock, Prior-Preferred Stock

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Participating preferred stock

Preferred stock that provides the holder with a specified dividend plus the right to additional earnings under specified conditions.