participating(redirected from participate)
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Related to participate: participle
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.