Definition of preferred stock in English:

preferred stock

Pronunciation /prəˌfərd ˈstäk/ /prəˌfərd ˈstɑk/


North American
  • Stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.

    • ‘Every company has a hierarchical structure of rights which accompany the three main classes of securities that companies issue: bonds, preferred stock, and common stock.’
    • ‘He learned, for example, to issue equity in preferred stock rather than in common stock in order to avoid what's known as the ‘cheap stock’ issue.’
    • ‘Indeed, payment of dividends could begin as early as next year, with holders of preferred stock receiving the first dividend payments.’
    • ‘The Big Board has plenty of preferred stock, foreign stocks, and closed-end bond funds that could skew the figures.’
    • ‘Then there is the issue of how bids will be structured - debt, common or preferred stock, or some combination.’
    • ‘Recently, a large regional farmer cooperative sold $90 million in non-voting preferred stock that pays a dividend of 8 percent per year.’
    • ‘Some suggest the board of directors can set a price; others suggest a rule-of-thumb that bases the common stock price on the most recent issuance of preferred stock.’
    • ‘Instead, it will raise roughly $8 billion in debt and preferred stock that carry fixed interest payments.’
    • ‘In other instances, outsiders may purchase dividend-bearing but non-voting preferred stock.’
    • ‘Holders of $100 million in Farmland preferred stock have not fared as well, with an estimated payback of only about $4 million at this time.’
    • ‘Before he invests in a company, Romick examines the entire capital structure - its common and preferred stock, convertible debt, bank loans, bonds - to see which security offers the best risk-reward potential.’
    • ‘The remainder is invested into common and preferred stock, and cash and convertible bonds, which can be transformed into equity at an investor's discretion.’
    • ‘The company at the bottom, Company A, was capitalized with 50 percent bonds, 20 percent nonvoting preferred stock, and 30 percent common voting stock.’
    • ‘It bears pointing out that the company's debt elimination is a result of more than $17 million in new investment, while the rest is attributed to a debt equity swap reissued as preferred stock.’
    • ‘Eventually, the cooperative may use changes in the federal law which permit it to convert member equity into preferred stock.’
    • ‘Alternative options include sale of preferred stock, joint ventures and consolidation.’
    • ‘The very few that do hold them as preferred stock investments rather than trading them on public markets.’
    • ‘It also had issued a lot of preferred stock, which led to a cumulative dividend issue.’


preferred stock

/prəˌfərd ˈstäk/ /prəˌfərd ˈstɑk/