A disproportionate distribution occurs when some shareholders receive cash or other property while others see an increase in their proportionate interests in the assets or earnings and profits of the corporation. This typically leads to an unequal allocation of the corporation's resources among its shareholders.
A dividend is the distribution of a portion of a company's earnings to its shareholders, typically articulated as an amount per share. Its yield is a popular metric for investors.
Participating preferred stock is a type of preferred stock that not only pays a specified dividend but also entitles the holder to participate with common shareholders in additional earnings distributions under certain conditions.
