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

Alphabet said it plans to issue $30 billion in concurrent underwritten public offerings consisting of $15 billion of mandatory convertible preferred stock and $15 billion in its class A and class C common equity.

From Barron's • Jun. 1, 2026

Strategy, the bitcoin-hoarding firm, sold 32 bitcoin for $2.5 million last week, its first sale since late 2022, to fund preferred stock dividends.

From The Wall Street Journal • Jun. 1, 2026

Buffett’s trouble with airlines started in the late 1980s, when Berkshire’s $358 million investment in USAir’s preferred stock in 1989 quickly went south.

From The Wall Street Journal • May 19, 2026

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

From MarketWatch • May 11, 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