preferred stock

WordReference Random House Unabridged Dictionary of American English © 2026

preferred′ stock′, 

1. Business stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation.

• 1840–50, American.

Collins Concise English Dictionary © HarperCollins Publishers::

preferred stock noun

1. shares representing part of the capital issued by a company and entitling their holders to priority with respect to both net profit and net assets. Preferred stock usually carries a definite rate of dividend that is generally lower than that declared on common stock
   Also called (in eg Britain, Australia): preference shares