Participating preferred stock is advantageous to common stockholders because it receives more dividends.

Name: Participating preferred stock is advantageous to common stockholders because it receives more dividends.
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Participating preferred stock is advantageous to preferred shareholders because it allows them to receive additional dividends beyond their fixed dividend rate if the company performs well, potentially at the expense of common stockholders.

Participating Preferred Stock Is Advantageous to Common Stockholders Because It