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

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

Spyce, the business unit behind Infinite Kitchen, was sold for close to $200 milion in cash and shares of Wonder’s Series C preferred stock.

From Los Angeles Times • Jan. 16, 2026

And bankers will advise clients on raising early stage equity, preferred stock and convertible bonds.

From The Wall Street Journal • Jan. 16, 2026

In 2008, when the mortgage meltdown threatened the U.S. housing market, the Treasury agreed to support the two companies in exchange for senior preferred stock purchase agreements.

From Barron's • Jan. 6, 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