participating preferred

Definition

A preferred stock which, in addition to a regular dividend, also pays an additional dividend (the participating dividend) when common stock dividends exceed a specified amount.

Use this term in a sentence

You may want to try and find a good price on a participating preferred stock and load up on it while its available.

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I told him that we called it participating preferred and it had to do with stocks, which made him happy because he liked stocks.

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The participating preferred security was the optimal security for most investors who overvalue dividends because they like the regular payments.

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