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 to purchase $400 million of the company’s preferred stock, making the federal government MP’s largest shareholder. Spencer Kimball, CNBC, 8 Aug. 2025 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 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 21 Aug. 2025.

Legal Definition

preferred stock

see stock

More from Merriam-Webster on preferred stock

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