preferred stock

American  

noun

1. stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation.

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preferred stock British  

noun

1. Also called (in eg Britain, Australia): preference shares.  shares representing part of the capital issued by a company and entitling their holders to priority with respect to both net profit and net assets. Preferred stock usually carries a definite rate of dividend that is generally lower than that declared on common stock

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Etymology

Origin of preferred stock

An Americanism dating back to 1840–50

Example Sentences

That came after a $1.2 billion investment in the company’s convertible preferred stock led by Apollo.

From The Wall Street Journal • Apr. 20, 2026

Holders of Two Harbors Series A, Series B and Series C preferred stock are slated to have their shares redeemed at $25 per share, plus any accumulated and unpaid dividends.

From The Wall Street Journal • Mar. 27, 2026

Rather than releasing the companies immediately or to selling part of the government’s stake, the plan calls for the government to “deem repaid” the senior preferred stock it owns.

From Barron's • Mar. 20, 2026

During the week to March 15, the company raised about $1.6 billion through the sale of $1.2 billion in preferred stock and the sale of $400 million in common stock.

From MarketWatch • Mar. 16, 2026

Treasury didn’t ask for a piece of the action, or management changes, or for that matter anything at all except for a teaspoon of out-of-the-money warrants and preferred stock.

From "The Big Short" by Michael Lewis