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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The Defense Department has purchased $400 million of preferred stock to help MP stand up a rare earth domestic supply chain. Fred Imbert, CNBC, 11 July 2025 The Department of Defense will buy $400 million in MP Materials’ preferred stock, along with a warrant to purchase common stock—investments the mining company will use to build a new rare earth magnet plant, in addition to its Mountain Pass facility in California’s Mojave Desert. Sara Dorn, Forbes.com, 10 July 2025 Essentially, the federal government infused capital into the GSEs, first $100 billion then $200 billion, to keep them afloat by buying preferred stock in the companies. Roger Valdez, Forbes.com, 7 July 2025 Preferred Stock #3: First Trust Intermediate Duration Preferred & Income Fund (FPF) Most preferred stocks are perpetual in nature. Brett Owens, Forbes.com, 11 May 2025 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

Browse Nearby Words

Cite this Entry

“Preferred stock.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/preferred%20stock. Accessed 23 Jul. 2025.

Legal Definition

preferred stock

see stock

More from Merriam-Webster on preferred stock

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!