Participating Preferred Stock A type of preferred stock giving the holder the right to dividends equal to the specified rate of preferred dividends plus an additional dividend based on a specified condition. Home Resources Startup Law Dictionary Participating Preferred Stock Return to Glossary Need legal help? Schedule a free consultation with a world-class startup attorney on LawTrades. LET'S CHAT Roy G. Business Attorney Heather N. Business Attorney Jared S. Business Attorney Tell us about your project We'll connect you with a vetted attorney in just a few minutes. Trusted by top companies like :