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Home > QFINANCE Dictionary > Definition of participating preference share

Definition of

participating preference share

Stockholding & Investments

stock yielding dividend and share of surplus profit a type of preferred stockpreference share that entitles the holder to a fixed dividend and, in addition, to the right to participate in any surplus profits after payment of agreed levels of dividends to holders of common stock has been made.

Related definitions of "participating preference share"

participating preference share - Related Articles
  • Convertible Preferred Stock

    Calculations

    Convertible preferred stock (known as preference shares in the United Kingdom) gives the holder the right to exchange it at a fixed price for another security, usually common stock. The trick is knowing if, and when, to exercise that right.

  • Earnings per Share

    Calculations

    To calculate EPS, start with net income (earnings) for the period in question, subtract the total value of any preferred stock dividends, then divide the resulting figure by the number of shares outstanding during that period:

  • Attracting Small Investors

    Best Practice

    A company is financed by various sources, such as short-term borrowings, long-term debt, and owner’s equity—ordinary shares, preference shares, and reserves. Small investors can participate in most of these. A significant portion of funds finds its way into the bond or stock markets through
    By Wondimu Mekonnen

  • Understanding and Accessing Private Equity for Small and Medium Enterprises

    Best Practice

    Participation agreements include a large number of clauses that often raise problems for companies which are seeking private equity for the first time. For instance, investors have comprehensive rights to information and codetermination, but, at the same time, the rights of original shareholders regarding the sale of their corporate shares are massively restricted
    By Arne-G. Hostrup

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Definitions of ’participating preference share’ and meaning of ’participating preference share’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’participating preference share’ and other financial terms with our online QFINANCE Financial Dictionary.

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