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What is Meant by Participating Preference Shares? - Commerce

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प्रश्न

What is meant by participating preference shares?

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उत्तर

Participating Preference Shares: The preference shares which get the share in the surplus profit of the company are known as participating preference shares. Preference shareholders get a fixed rate of dividend in case a surplus profit is left after paying a fixed dividend to preference and equity shares. The participating preference shares get a share in that surplus profit.

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