Concept
Version 5
Created by Boundless
Common and Preferred Stock
Participating Preferred vs. Non-Participating Preferred
This graph shows an example of a liquidation event, illustrating how assets will be divided up between common, participating preferred, and non-participating preferred stock holders. All preferred stockholders are paid first, before common stock holders. Participating preferred stockholders can "double dip", and are entitled to both their money back, as well as the leftovers for common stock, proportionate to the amount of common stock for which their preferred stock can be converted into.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
"Participating preferred stock."
http://en.wikipedia.org/wiki/Participating_preferred_stock
Wikipedia
GNU FDL.