Share this entry
preferred stock Syllabification: pre·ferred stock
Pronunciation: /prəˈfərd ˈstäk/

Definition of preferred stock in English:


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.
Definition of preferred stock in:
Share this entry

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.

Subscribe to remove ads and access premium resources