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

See Examples For:

preferred stock

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

To calculate enterprise value, Strategy adds the market value of its common stock to the principal amount of its debt and the par value of its preferred stock, then subtracts cash.

From The Wall Street Journal ● Jul. 6, 2026

The company said it used the money raised to fund payment of distributions on preferred stock, and to replenish the money used from its U.S. dollar reserves for the distributions.

From MarketWatch ● Jul. 6, 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