Asked by
Carolina Navarro
on Nov 15, 2024
Verified
A common shareholder's right to purchase an equivalent percentage of new stock is his/her participating right.
Participating Right
A feature of certain securities that allows the holder to receive dividends or other benefits in addition to the basic rights associated with the security.
- Become familiar with the rights and benefits attached to preferred and common stocks, including preferences in dividends, voting entitlements, and rights of first refusal.
Verified Answer
TM
Learning Objectives
- Become familiar with the rights and benefits attached to preferred and common stocks, including preferences in dividends, voting entitlements, and rights of first refusal.