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.

---

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

---

Etymology

Origin of preferred stock

An Americanism dating back to 1840–50

Example Sentences

The company also sold preferred stock to raise $100,000, to bring the total amount raised to $43 million.

From MarketWatch • May 11, 2026

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

Entities connected with the Saudi Public Investment Fund are purchasing $550 million in Lucid preferred stock.

From Barron's • Apr. 14, 2026

Epstein in 2010 bought JPMorgan preferred stock and his financial statements show he held it for years, owning at least $5.7 million worth in early 2019.

From The Wall Street Journal • Mar. 18, 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