Participating preferred stock


Also found in: Wikipedia.

Participating preferred stock

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

Participating Preferred Stock

A stock, entitling the bearer to part ownership in the issuing company, and also to a certain minimum dividend. The dividend paid may be higher than the minimum depending upon company performance. In any case, these dividends must be paid before any dividends are paid on common stock, and if a company is unable to pay dividends on participating preferred stock, stockholders have the right to force the liquidation of the company. Private equity and venture capital firms often use participating preferred stock as a means of financing their investments. Unlike most other preferred stock owners, participating preferred stockholders sometimes have voting rights in the company. See also: Cumulative preferred stock, Non-cumulative stock, Convertible stock.
References in periodicals archive ?
Each Right will entitle stockholders to buy one one-hundredth of a share of a new series of junior participating preferred stock at an exercise price of $30.
AIG) today announced that on March 4, 2009, it issued 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to the AIG Credit Facility Trust, a trust established for the sole benefit of the United States Treasury.
Each right will entitle the holder to buy one-hundredth (1/100th) of a share of a new series of junior participating preferred stock at an exercise price of $160.
The Rights will become exercisable to purchase 1/1000th of a share of Ligand's Series A Participating Preferred Stock, at an exercise price of $100.
Each right will entitle the holder to buy one one-hundredth (1/100th) of a share of a new series of junior participating preferred stock at an exercise price of $65 per share.
Partial ValuationCohow to analyze the special features of VC transactions such as convertible preferred stock, participating preferred stock, payment-in-kind dividends, and liquidation preferences
In addition, the owner of the Company's sole outstanding share of Series A Preferred Stock, the National Association of REALTORS(R), re-elected Alan Yassky as a Class I director and the holders of Series B Convertible Participating Preferred Stock, Elevation Partners, re-elected Roger McNamee as a Class I director.
Each right will entitle the holder in certain events to purchase one-one thousandth (1/1,000th) of a share of participating preferred stock at an initial exercise price of $75.
50, the right for one one-thousandth of a share of Bexil's newly-created Series A Participating Preferred Stock, or the number of shares of Bexil common stock equal to the holder's number of rights multiplied by the exercise price and divided by 50% of the market price of Bexil's common stock on the date of the occurrence of such an event.
to purchase all of the outstanding shares of common stock (including the associated Series A Junior Participating Preferred Stock purchase rights) of Imagistics, at a price of $42.
Each right will entitle shareholders to buy one one- hundredth of a share of a new series of junior participating preferred stock at an exercise price of $40.
7 million Series A Participating Preferred Stock issue by Chroma.

Full browser ?