preferred stock


: 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 The Labor Department found that the bank’s 401(k) plan and its trustee paid between $1,033 and $1,090 per share for preferred stock, which later converted to $1,000 in common stock when it was allocated to plan participants, the government agency said Monday. Ben Eisen, WSJ, 12 Sep. 2022 The company was sued in February for allegedly rigging a shareholder vote that would allow AMC to convert preferred stock to common stock and issue hundreds of millions of new shares. Reuters, CNN, 21 July 2023 JPMorgan is not assuming First Republic’s corporate debt or preferred stock. Rachel Siegel, Washington Post, 1 May 2023 The loan could also convert into preferred stock from the company’s most recent past funding round, or roll into its next equity financing of $2 million or more at 80% its price, per the document. Alex Konrad, Forbes, 17 Mar. 2023 JPMorgan Chase will not be assuming First Republic’s corporate debt or preferred stock. Heather Landy, Quartz, 1 May 2023 And if things don’t work out, existing owners might not be any better off since preferred stock ranks above common in bankruptcy. Spencer Jakab, WSJ, 7 Feb. 2023 For example, a holding corporation that issued preferred stock may modify that stock by means of an exchange offer conducted by the corporation’s subsidiary. Carrie Brandon Elliott, Forbes, 6 Feb. 2023 At age 11 in 1942, Mr. Buffett made his first investment: three shares of Cities Service’s preferred stock. Akane Otani, WSJ, 21 Aug. 2022 See More

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.” Dictionary, Merriam-Webster, Accessed 27 Sep. 2023.

Legal Definition

preferred stock

see stock

More from Merriam-Webster on preferred stock

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