preferred stock

   A class of shares in a corporation that gives the holders priority in payment-at a predetermined fixed rate-of dividends (and distribution of assets in the event of the dissolution of the corporation) over owners of common stock. Holders of preferred stock do get the first share of any profits, but they do not participate in higher dividends if the corporation makes large profits, and usually cannot vote for directors.

Business law dictionary. 2015.

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 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… …   Financial and business terms

  • 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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