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
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
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
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
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.
Freebase
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
Numerology
Chaldean Numerology
The numerical value of preferred stock in Chaldean Numerology is: 6
Pythagorean Numerology
The numerical value of preferred stock in Pythagorean Numerology is: 1
Translations for preferred stock
From our Multilingual Translation Dictionary
- preferensaktieSwedish
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"preferred stock." Definitions.net. STANDS4 LLC, 2023. Web. 30 Sep. 2023. <https://www.definitions.net/definition/preferred+stock>.
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