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The Current Page is: Participating Preferred Stock
Participating Preferred Stock
In addition to fixed-rate dividend payments, owners of participating preferred stock have the opportunity to participate directly in corporate profits. Preferred stock XYZ 5% participating to 10% means that a shareholder receives a 5% fixed-rate dividend annually; and, if the company had a particularly profitable year, the participating preferred shareholder may receive up to 5% in additional interest for the year.
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