preferred stock

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

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

Word History and Origins

Origin of preferred stock¹

An Americanism dating back to 1840–50

Example Sentences

The preferred stock and warrant for common stock give the government a 15% stake in the company, making the U.S. its largest shareholder.

Read more on Barron's

The preferred stock and warrant for common stock give the government a 15% stake in the company, making the U.S. its largest shareholder.

Read more on Barron's

Using Berkshire’s Occidental preferred stock as a currency for most of the price could be more appealing to the oil-and-gas company.

Read more on Barron's

Investors in Occidental may also have been disappointed that Berkshire didn’t use its Occidental preferred stock to pay for the deal.

Read more on Barron's

Australian investors have historically preferred stocks to bonds, in part due to dividend friendly tax laws since the 1980s that enhance income from stocks.

Read more on Reuters