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

The company relies on preferred stock issuances as a means of raising capital to cover its Bitcoin purchases without diluting common shareholders.

From Barron's • Apr. 13, 2026

By the time Bennett took Ashford Inc. private again in 2024—for $11 million—its common shareholders had never had a profitable year after paying interest costs and preferred stock dividends.

From Barron's • Apr. 9, 2026

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 • Mar. 27, 2026

During the week to March 15, the company raised about $1.6 billion through the sale of $1.2 billion in preferred stock and the sale of $400 million in common stock.

From MarketWatch • Mar. 16, 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