What does preferred stock mean?

Definitions for preferred stock
pre·ferred stock

This dictionary definitions page includes all the possible meanings, example usage and translations of the word preferred stock.

Princeton's WordNet

  1. preferred stock, preferred shares, preference sharesnoun

    stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights

Wiktionary

  1. preferred stocknoun

    Stock with a dividend, usually fixed, that is paid out of profits before any dividend can be paid on common stock and that has priority to common stock in liquidation.

Wikipedia

  1. Preferred stock

    Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred stocks are senior (i.e., higher ranking) to common stock but subordinate to bonds in terms of claim (or rights to their share of the assets of the company, given that such assets are payable to the returnee stock bond) and may have priority over common stock (ordinary shares) in the payment of dividends and upon liquidation. Terms of the preferred stock are described in the issuing company's articles of association or articles of incorporation. Like bonds, preferred stocks are rated by major credit rating agencies. Their ratings are generally lower than those of bonds, because preferred dividends do not carry the same guarantees as interest payments from bonds, and because preferred-stock holders' claims are junior to those of all creditors. Preferred equity has characteristics similar to preferred stock, but the term is typically used for investments in real estate or other private investments where the common stock is not publicly traded, so private equity has no public credit rating.

ChatGPT

  1. preferred stock

    Preferred stock is a class of shares in a corporation that typically offer a higher level of dividends but fewer voting rights compared to common stock. Preferred stockholders have a higher claim on dividends and assets if the corporation goes bankrupt, meaning they are paid dividends before common shareholders. However, this type of stockholders generally do not have voting rights in corporate decisions like common stockholders do.

Wikidata

  1. Preferred stock

    Preferred stock is an equity security which may have any combination of features not possessed by common stock including properties of both an equity and a debt instruments, and is generally considered a hybrid instrument. Preferreds are senior to common stock, but subordinate to bonds in terms of claim. Preferred stock usually carries no voting rights, but may carry a dividend and may have priority over common stock in the payment of dividends and upon liquidation. Terms of the preferred stock are stated in a "Certificate of Designation". Similar to bonds, preferred stocks are rated by the major credit-rating companies. The rating for preferreds is generally lower, since preferred dividends do not carry the same guarantees as interest payments from bonds and they are junior to all creditors.

Matched Categories

How to pronounce preferred stock?

How to say preferred stock in sign language?

Numerology

  1. Chaldean Numerology

    The numerical value of preferred stock in Chaldean Numerology is: 6

  2. Pythagorean Numerology

    The numerical value of preferred stock in Pythagorean Numerology is: 1


Translations for preferred stock

From our Multilingual Translation Dictionary

Get even more translations for preferred stock »

Translation

Find a translation for the preferred stock definition in other languages:

Select another language:

  • - Select -
  • 简体中文 (Chinese - Simplified)
  • 繁體中文 (Chinese - Traditional)
  • Español (Spanish)
  • Esperanto (Esperanto)
  • 日本語 (Japanese)
  • Português (Portuguese)
  • Deutsch (German)
  • العربية (Arabic)
  • Français (French)
  • Русский (Russian)
  • ಕನ್ನಡ (Kannada)
  • 한국어 (Korean)
  • עברית (Hebrew)
  • Gaeilge (Irish)
  • Українська (Ukrainian)
  • اردو (Urdu)
  • Magyar (Hungarian)
  • मानक हिन्दी (Hindi)
  • Indonesia (Indonesian)
  • Italiano (Italian)
  • தமிழ் (Tamil)
  • Türkçe (Turkish)
  • తెలుగు (Telugu)
  • ภาษาไทย (Thai)
  • Tiếng Việt (Vietnamese)
  • Čeština (Czech)
  • Polski (Polish)
  • Bahasa Indonesia (Indonesian)
  • Românește (Romanian)
  • Nederlands (Dutch)
  • Ελληνικά (Greek)
  • Latinum (Latin)
  • Svenska (Swedish)
  • Dansk (Danish)
  • Suomi (Finnish)
  • فارسی (Persian)
  • ייִדיש (Yiddish)
  • հայերեն (Armenian)
  • Norsk (Norwegian)
  • English (English)

Word of the Day

Would you like us to send you a FREE new word definition delivered to your inbox daily?

Please enter your email address:


Citation

Use the citation below to add this definition to your bibliography:

Style:MLAChicagoAPA

"preferred stock." Definitions.net. STANDS4 LLC, 2024. Web. 16 Apr. 2024. <https://www.definitions.net/definition/preferred+stock>.

Discuss these preferred stock definitions with the community:

0 Comments

    Are we missing a good definition for preferred stock? Don't keep it to yourself...

    Image or illustration of

    preferred stock

    Credit »

    Free, no signup required:

    Add to Chrome

    Get instant definitions for any word that hits you anywhere on the web!

    Free, no signup required:

    Add to Firefox

    Get instant definitions for any word that hits you anywhere on the web!

    Browse Definitions.net

    Quiz

    Are you a words master?

    »
    the transportation of people (as a family or colony) to a new settlement (as after an upheaval of some kind)
    A perusal
    B scrutiny
    C match
    D relocation

    Nearby & related entries:

    Alternative searches for preferred stock: