participating

1. Of, relating to, or being an unusual class of preferred stock that participates with common stock in dividend increases according to a specified formula. For example, a participating preferred issue might require that any increases in dividends on common stock above $2 per share be shared equally with preferred. Compare nonparticipating 1.
2. Of or relating to a type of life insurance in which the insured shares in the insurer's investment success or lack of success. Owners of participating policies receive dividends from the insurer. Also called with-profits. Compare nonparticipating 2. See also vanishing premium.