This term is associated with preferred stock that does not allow its holders to receive more than its stated dividend. The nonparticipating feature is typical in preferred stock. To learn more about preferred stock, see Explanation of Stockholders' Equity. To Top
Insurance under which the policy holder is not entitled to share in the dividend distribution of the company.
Insurance contrasts on which no policy dividends are paid because there is no contractual provision for the policy owner to participate in the surplus. Contrast with Participating.