What does preferred stock mean?

Here's a list of possible definitions for the term preferred stock:

Princeton's WordNet

  1. preferred stock, preferred shares, preference shares(noun)

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


  1. preferred stock(Noun)

    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.


  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


  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

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