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Participating Preferred Stock
Participating Preferred Stock
Image 1 A type of preferred stock that gives holders the right to receive additional earnings payouts over and above the specified dividend rate under certain conditions.
Image 2 Participating preferred stock is rare. However, one use is as a poison pill. In this case stock is issued to current shareholders giving them the right to buy more shares at a bargain price in the event of an unwanted takeover bid.


Poison Pill

Preferred Stock

Prior-Preferred Stock