Daily Point 2292 - Participating Preferred Shares

 

The Banking Tutor 

Daily Point 2292 

Participating Preferred Shares 

Participating preference shares are often referred to as "preferred stock." Preferred shareholders have a priority claim on company earnings. They receive dividends before common shareholders. Participating Preferred Stock provides holders with a fixed dividend like traditional preferred stock, plus a share in the company's remaining profits after common stockholders have received their dividend. This means investors receive both a stable, priority payment and the potential for additional gains if the company is successful.

Sekhar Pariti

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