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 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 Buffett first invested in America’s second-largest bank when Berkshire bought $5 billion worth of preferred stock in 2011, a vote of confidence in CEO Brian Moynihan’s ability to lead the lender’s recovery following the 2008 financial crisis. Bygreg McKenna, Fortune, 25 Sep. 2024 See all Example Sentences for preferred stock 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'preferred stock.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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 31 Oct. 2024.

Legal Definition

preferred stock

see stock

More from Merriam-Webster on preferred stock

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