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

Sector bond ETFs are tougher to find, but Invesco Financial Preferred holds preferred stock in many financial institutions.

From Barron's

The purchase was funded by proceeds from sales of the company’s common shares and perpetual preferred stock.

From MarketWatch

Strategy on Monday also said it established the reserve of U.S. dollars to support dividends on its preferred stock and interest on debt.

From The Wall Street Journal

The company also said it had established a $1.44 billion U.S. dollar reserve “to support the payment of dividends on its preferred stock and interest on its outstanding indebtedness.”

From Barron's

The company said it had established a $1.44 billion reserve in U.S. dollars “to support the payment of dividends on its preferred stock and interest on its outstanding indebtedness.”

From Barron's