Participating Convertible Preferred Share - PCP

外汇网2021-06-19 13:33:48 69

An equity holding that gives investors the right to claim excess earnings (along with common-stock shareholders) in addition to the pferred pidend. 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.

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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.

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