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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 Defense Department agreed in July to buy $400 million of MP’s preferred stock and also guaranteed a minimum price of $110 per kilogram for the next 10 years for neodymium-praseodymium oxide, or NdPr. Lisa Kailai Han, CNBC, 14 Nov. 2025 In July 2025, the Department of Defense agreed to buy $400 million of convertible preferred stock in MP Materials. H. Sami Karaca, The Conversation, 28 Aug. 2025 The undisputed whale in the group is still billionaire Michael Saylor’s Strategy, the company that pioneered the corporate crypto playbook, leaning heavily on creative financing from convertible notes to variable-rate perpetual preferred stock. Julie Goldenberg, Forbes.com, 19 Aug. 2025 The company declared cash dividends on its common stock and preferred stock, continuing its practice of quarterly dividend payments. Quartz Intelligence Newsroom, Quartz, 25 Mar. 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

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Cite this Entry

“Preferred stock.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/preferred%20stock. Accessed 30 Nov. 2025.

Legal Definition

preferred stock

see stock

More from Merriam-Webster on preferred stock

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