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

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

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Word History

First Known Use

circa 1859, in the meaning defined above

Legal Definition

preferred stock

see stock