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

Holders of Two Harbors Series A, Series B and Series C preferred stock are slated to have their shares redeemed at $25 per share, plus any accumulated and unpaid dividends.

From The Wall Street Journal

Blue Owl owns Kuvare preferred stock and manages some of its investments, but that doesn’t mean they are related parties.

From The Wall Street Journal

Rather than releasing the companies immediately or to selling part of the government’s stake, the plan calls for the government to “deem repaid” the senior preferred stock it owns.

From Barron's

The government in return received warrants to acquire nearly 80% of the companies’ common shares as well as a new class of “senior” preferred stock.

From Barron's

Last week, Tesla said it plans to buy $2 billion worth of xAI’s Series E preferred stock and created a framework to evaluate future collaborations.

From MarketWatch