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

The financing includes $15 billion in common-equity, $15 billion in convertible preferred stock, and $10 billion to Berkshire Hathaway.

From Barron's • Jun. 2, 2026

The Alphabet mandatory convertible preferred stock will pay a fixed dividend for three years and then convert into equity based on a predetermined formula.

From Barron's • Jun. 1, 2026

Strategy, the bitcoin-hoarding firm, sold 32 bitcoin for $2.5 million last week, its first sale since late 2022, to fund preferred stock dividends.

From The Wall Street Journal • Jun. 1, 2026

Some $2.56 billion of that was in preferred stock.

From MarketWatch • May 27, 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