# Participating preferred

> Participating preferred — Preferred that takes its liquidation preference and then shares in what is left alongside common as if converted, often up to a cap. Non-participating preferred takes the greater of its preference or its as-converted share, not both.

Source: https://lopifi.com/glossary/participating-preferred
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is participating preferred?** In accounting, participating preferred means preferred that takes its liquidation preference and then shares in what is left alongside common as if converted, often up to a cap. Non-participating preferred takes the greater of its preference or its as-converted share, not both.

## Words this system refuses for it

- liquidation preference alone

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** liquidation-preference