What are "participating preference shares"?

Answer by  zippythepinhead (46)

Participating preference shares pay a set dividend. In addition, they will participate in the profits of the company by paying additional dividends if certain profitability targets are met.

Answer by  km8738 (1917)

They are stocks which pay dividends. In any case, those who have participating preference shares will receive their dividends before those without.

Answer by  spiro (78)

To clarify the meaning of preference shares first we should know that there are two types of shares: preference and ordinary. With possession of preference shares we have part of the company and the right for part of profits as dividend but we have no right in management company.