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

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Example Sentences

See Examples For:

preferred stock

The so-called mandatory convertible preferred stock is expected to carry a dividend yield of 6% to 6.5%.

From Barron's ● Oct. 26, 2026

They also alleged that management then created a “sham entity” to issue lucrative preferred stock that further damaged the creditors’ financial position.

From The Wall Street Journal ● Sep. 28, 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

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

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

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