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