preferred stock


noun

stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation.

Origin of preferred stock

An Americanism dating back to 1840–50

British Dictionary definitions for preferred stock

preferred stock

noun

US and Canadian 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