What is meant by participating preference shares ? – InterviewSolution

InterviewSolution

1.	What is meant by participating preference shares ?
Answer» Participating Preference Shares : The preference shares which get share in the surplus profit of the company are known as participating preference shares. Preference shareholders get a fixed rate of dividend in case a surplus profit is left after paying fixed dividend to preference and equity shares. The participating preference shares get a share in that surplus profit.

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