The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Participating preferred shares, give the holder the right to receive dividends paid to preferred shareholders.

Participating shares definition

Participating preferred shares, give the holder the right to receive dividends paid to preferred shareholders.

This is compared to non-participating shares, that do not give the holder a right to any share of a company’s profit and only pay a fixed rate of return like preferred shares. Participating shares also give the holder the right to receive an additional dividend based on whatever excess profits are left over after all other dividends are paid.

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