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.

---

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

---

Etymology

Origin of preferred stock

An Americanism dating back to 1840–50

Example Sentences

See Examples For:

preferred stock

Shares of Strategy and its biggest dividend-paying preferred stock, Stretch, have reversed some losses since the plan was announced.

From The Wall Street Journal ● Jul. 16, 2026

Strategy sold more than 3,000 bitcoins to raise cash to pay dividends on its preferred stock — something Executive Chair Michael Saylor had previously said it didn’t need to do.

From The Wall Street Journal ● Jul. 6, 2026

Strategy had previously been issuing preferred stock and selling common stock to raise money to buy and hold bitcoin.

From MarketWatch ● Jul. 6, 2026

Nick O’Neil, a crypto content creator based in Miami, said he holds about $21,000 worth of Stretch and plans to buy more if the preferred stock dips further.

From The Wall Street Journal ● Jun. 30, 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