Participating Convertible Preferred Share - PCP

Filed Under » , ,
Dictionary Says

Definition of 'Participating Convertible Preferred Share - PCP'

An equity holding that gives investors the right to claim excess earnings (along with common-stock shareholders) in addition to the preferred dividend. PCPs are commonly used in venture-capital financing; venture capitalists will often exercise the option to convert their PCPs to common stock when they intend to exit an investment. The type of exit – initial public offering or trade sale – determines the security's cash flow right.
Investopedia Says

Investopedia explains 'Participating Convertible Preferred Share - PCP'

The National Venture Capital Association is the industry lobbying and advocacy organization for venture capitalists. According to a 2009 Global Insight research study, companies with venture-capital backers accounted for 12.1 million jobs and $2.9 trillion in revenue in the U.S. in 2006 alone.

Articles Of Interest

  1.

    What Is Private Equity?

    This investment vehicle attracts wealthy investors to increase the value of portfolio companies.

  2. Private Equity A Trendsetter For Stocks

    In this article, we'll show you how private equity sets the trend for stocks everywhere.

  3. Investing In IPO ETFs

    Learn the history, rules and risks of investing in IPO exchange-traded funds.

  4. Cashing In On The Venture Capital Cycle

    Find out how VC firms make the market go round, and round and round.

  5. 5 Tips For Investing In IPOs

    Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters.

  6. The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.

  7. How The Sarbanes-Oxley Era Affected IPOs

    After the infamous collapse of companies like Tyco, Enron and WorldCom, the government responded to try and prevent it from happening again.

  8. Top 9 Venture Capital Interview Questions

    Ace your interview by learning how to break down the most common questions asked.

  9. IPO Lock-Ups Stop Insider Selling

    Ownership plays a key role when companies go public. Find out how.

  10. Seek An Adventure In Venture Capital

    Make a career out of chasing down the "next big thing".
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center