"Pari passu" is a Latin term meaning "equal in all respects". In finance transactions, pari passu refers to new shares or bonds that have the same rank, liquidation preference and/or privileges as old shares or bonds.

Participating Preferred Stock

In the venture capital context, "participating preferred stock" means preferred stock in a corporation that receives its liquidation preference in a merger or acquisition, and also participates in the remaining merger or acquisition proceeds with the other shareholders.