participating preferred

noun

Stock Exchange.

1. a preferred stock entitled to its fixed dividend and to additional ones on a specified basis after payment of dividends on common stock.

Word History and Origins

Origin of participating preferred¹

First recorded in 1925–30

Example Sentences

"Forbes is not aware of any plans to liquidate. If that were to happen, participating preferred investors would get their money back and more before Holmes gets a cent."

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"According to VC Experts, investors in Theranos own a particular kind of preferred equity, called participating preferred shares, which take precedence to common stock in the event of a liquidation," Forbes said.

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But I’m not really sure how it expects the average viewer to understand rapid fire dialogue about ratchet clauses and participating preferred, pro rata rights and convertible debt.

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And they would do things like six-x liquidation, participating preferred.

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Fully participating preferred stock issuance has been on a steady climb since 2008 in Life Sciences. 

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