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

In 2025, for example, Ares collected about $130 million in past-period PIK interest from loans and another $150 million for previously deferred PIK dividends from preferred stock.

From Barron's • May 6, 2026

Saylor has been anxious to promote the preferred stock, extolling its high-yield/ low volatility returns.

From MarketWatch • Apr. 16, 2026

Ayar Third Investment, an affiliate of Saudi Arabia’s Public Investment Fund, committed $550 million worth of convertible preferred stock, “further strengthening the strategic partnership between the PIF and Lucid,” according to Lucid.

From MarketWatch • Apr. 14, 2026

Blue Owl owns Kuvare preferred stock and manages some of its investments, but that doesn’t mean they are related parties.

From The Wall Street Journal • Mar. 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