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

Treasuries now yield 4% to almost 5%; investment-grade corporate bonds, 5% to 6%; mortgage securities, 5.5%; junk bonds, 7% or more; preferred stock, 6%; and municipal bonds, 2% to 4%.

From Barron's • Jun. 26, 2026

Strategy has been pressured since its biggest dividend-paying preferred stock, Stretch, began sliding below its par value of $100 and plunged to a record low.

From The Wall Street Journal • Jun. 25, 2026

The company uses preferred stock sales to acquire Bitcoin, holding 847,000 coins, or about 4% of the total supply.

From Barron's • Jun. 23, 2026

Factors pressuring the preferred stock include Bitcoin’s nearly 20% monthly drop, dividend sustainability concerns, and retail selling.

From Barron's • Jun. 23, 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