preferred stock

preferred stock
A type of equity or capital representing shares of ownership in a corporation. May or may not receive distributions of corporate income in the form of dividends. Has a higher priority claim to corporate earnings or assets than common stock but lower priority than corporate debt. A corporation may issue more than one class of preferred stock with differing priority status such as first or second preferred. Often preferred stock issues have a defined dividend payment rate as long as there are sufficient corporate earnings to distribute. American Banker Glossary
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A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred stock pays a fixed dividend that is paid prior to the common stock dividend, stated in a dollar amount or as a percentage of par value. This stock does not usually carry voting rights. Preferred stock has characteristics of both common stock and debt. Bloomberg Financial Dictionary
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See preference shares. Dresdner Kleinwort Wasserstein financial glossary
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Shares that pay dividends at a specified or sometimes adjustable rate and have preference over ordinary shares ( common stock) in the payment of dividends and liquidation of assets. Exchange Handbook Glossary

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preferred stock UK US noun [C] (also preference stock) FINANCE, STOCK MARKET
► a share or group of shares in a company that gives the owner the right to receive a dividend (= part of the company's profit) before dividends are paid to owners of common shares, or when dividends on common shares are not paid at all
→ See also COMMON STOCK(Cf. ↑common stock), PARTICIPATING PREFERRED STOCK(Cf. ↑participating preferred stock), PREFERENCE SHARE(Cf. ↑preference share), PREFERRED SHARE(Cf. ↑preferred share)

Financial and business terms. 2012.

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Look at other dictionaries:

  • preferred stock — see stock Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. preferred stock n …   Law dictionary

  • preferred stock — preferred′ stock′ n. bus stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation • Etymology: 1840–50, amer …   From formal English to slang

  • preferred stock — ☆ preferred stock n. stock on which dividends must be paid before those of common stock: it usually also receives preference in the distribution of assets …   English World dictionary

  • Preferred stock — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Preferred stock — A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred stock pays a fixed dividend that is… …   Financial and business terms

  • Preferred Stock — A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have… …   Investment dictionary

  • Preferred stock — Prefer Pre*fer , v. t. [imp. & p. p. {Preferred}; p. pr. & vb. n. {Preferring}.] [F. pr[ e]f[ e]rer, L. praeferre; prae before + ferre to bear or carry. See 1st {Bear}.] 1. To carry or bring (something) forward, or before one; hence, to bring for …   The Collaborative International Dictionary of English

  • preferred stock — An ownership share in a corporation that has preference over *common stock in the distribution of earnings. Preferred status over common stock also often relates to payments arising on a corporation’s liquidation. Preferred *stockholders take on… …   Auditor's dictionary

  • preferred stock — noun stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights • Syn: ↑preferred shares, ↑preference shares • Hypernyms: ↑stock • Hyponyms: ↑cumulative preferred, ↑cumul …   Useful english dictionary

  • preferred stock — A part of the capital stock of a corporation, the peculiar and distinctive characteristic of which is that it is entitled to a priority over other stock in the distribution of profits. Sometimes called guaranteed stock. Corporate stock given a… …   Ballentine's law dictionary

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