Close Navigation
Learn more about IBKR accounts

Participating Preferred Stock

Trading Term

A type of Preferred Stock issue that offers returns exceeding the stated dividend if the company is performing well. For example, if a stock dividend is 5%, but participates to 8%, it would normally pay a 5% dividend. However, the participating preferred stockholder may receive up to 8% in dividends should the underlying company reach a specified level in performance.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.