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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Participating Preferred Stock

Definition:

PPS is a popular term in venture capital circles.

Think of it as common stock on steroids. When you hold this type of stock, you have preferred stock that also participates in the profits of the company. If the company goes belly-up and has to sell its assets, you might get back the purchase price of your stock plus any extra money common shareholders get from sales of inventory and other assets.