A participating preferred stock allows its holder to vote and participate in managing the company.

Question

Quizplus · Accepted Answer

Participating preferred stock does not allow its holder to vote and participate in managing the company. They have priority over common stockholders in receiving dividends and they may have a right to receive additional dividends if certain conditions are met, but they do not have a say in the management of the company.

A Participating Preferred Stock Allows Its Holder to Vote and Participate