participating

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Participant

A person or company with a stake in a venture. Examples of participants include a shareholder, an employee in a company, or a policyholder in an insurance policy.

participating

1. Of, relating to, or being an unusual class of preferred stock that participates with common stock in dividend increases according to a specified formula. For example, a participating preferred issue might require that any increases in dividends on common stock above $2 per share be shared equally with preferred. Compare nonparticipating.
2. Of or relating to a type of life insurance in which the insured shares in the insurer's investment success or lack of success. Owners of participating policies receive dividends from the insurer. Compare nonparticipating.
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