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. 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 Also called (in eg Britain, Australia)preference shares

Word History and Origins

Origin of preferred stock¹

An Americanism dating back to 1840–50

Example Sentences

In exchange for the cash, Fannie and Freddie issued preferred stock to Treasury that was supposed to pay 10 percent dividend.

From The Daily Beast

The hens came next; they held preferred stock, and always received a five-pound, semi-daily dividend to each pen of forty.

From Project Gutenberg

If he had been straight, we could have saved that preferred stock.

From Project Gutenberg

At first, when only preferred stock was issued, the bonus was $5.00 a year.

From Project Gutenberg

You can buy preferred stock of mills in Augusta at less than par.

From Project Gutenberg

Preferred stock will open in about a month with an extensive and carefully selected ballet.

From Project Gutenberg