preferred stock

noun

: stock guaranteed priority by a corporation's charter over common stock in the payment of dividends and usually in the distribution of assets

Examples of preferred stock in a Sentence

Recent Examples on the Web
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The filing discusses various financial obligations, including promissory notes and preferred stock interest, with notes payable totaling $7,632,488. CFN Enterprises continues to focus on its CFN Business and Ranco Business, while exploring strategic transactions and opportunities. Quartz Bot, Quartz, 15 Nov. 2024 Net loss for the period was $720 million, more than half of which was an accounting loss tied to converting preferred stock to common stock at the IPO. Phoebe Liu, Forbes, 17 Oct. 2024 If certain other conditions are met, the preferred stock would convert to common stock at $17.25 per share, which would give Beyond a 40 percent ownership stake of The Container Store’s common equity. Vicki M. Young, Sourcing Journal, 3 Sep. 2019 Another risk to consider is that investors holding preferred stock have lower seniority than bondholders in a company’s capital structure. Darla Mercado, Cfp®, CNBC, 10 Oct. 2024 See all Example Sentences for preferred stock 

Word History

First Known Use

circa 1859, in the meaning defined above

Time Traveler
The first known use of preferred stock was circa 1859

Dictionary Entries Near preferred stock

Cite this Entry

“Preferred stock.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/preferred%20stock. Accessed 21 Nov. 2024.

Legal Definition

preferred stock

see stock

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