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What does participating preferred stock mean?

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participating preferred stock
Noun
AE


A form of preferred stock common in continental Europe that, under specified conditions, pays an amount of the company’s distributable earnings in excess of the fixed minimum dividend, the amount fluctuating according to profits.

Synonym(s): 
  • [BE]: participating preference share capital
    .
Comment: 
Stock is a mass word and correctly used in the plural form only when referring to the different stock of the different issuers.
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