Definition of preferred stock in English:

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preferred stock

Pronunciation: /prəˈfərd ˈstäk/


Stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.
Example sentences
  • Every company has a hierarchical structure of rights which accompany the three main classes of securities that companies issue: bonds, preferred stock, and common stock.
  • He learned, for example, to issue equity in preferred stock rather than in common stock in order to avoid what's known as the ‘cheap stock’ issue.
  • Indeed, payment of dividends could begin as early as next year, with holders of preferred stock receiving the first dividend payments.
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