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

Australian investors have historically preferred stocks to bonds, in part due to dividend friendly tax laws since the 1980s that enhance income from stocks.

From Reuters

He also said it violates the certificate of designation that governs AMC's preferred stock.

From Reuters

AMC was sued in February for allegedly rigging a shareholder vote that would allow it to convert preferred stock to common stock and issue hundreds of millions of new shares.

From Reuters

AMC investors had sued the company in February, alleging a plan to convert preferred stock to common stock was enacted to circumvent the will of common stock holders who opposed the issuing of new shares.

From Reuters

The company was sued in February for allegedly rigging a shareholder vote that would allow AMC to convert preferred stock to common stock and issue hundreds of millions of new shares.

From Reuters