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 Additionally, the respective conversion prices or ratios, as applicable, of the preferred stock of the Company will be adjusted in accordance with the respective terms of the Certificate of Designation for each class of preferred stock. Charlotte Observer, 19 Apr. 2024 The investors will receive stock in the company valued at $2 per share, along with convertible preferred stock that could pay dividends every three months. Stan Choe, Fortune, 6 Mar. 2024 Read more: Coca-Cola Appeal of $882 Million Tax Ruling Poses Challenges Coca-Cola is hardly falling out of favor on Wall Street, and by one measure is the preferred stock. Katrina Compoli, Fortune, 13 Nov. 2023 Companies might also consider issuing preferred stock as an alternative to raising debt, said David Rievman, a tax partner at law firm Skadden, Arps, Slate, Meagher & Flom LLP. Mark Maurer, WSJ, 6 Feb. 2023 See all Example Sentences for preferred stock 

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.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/preferred%20stock. Accessed 20 Jul. 2024.

Legal Definition

preferred stock

see stock

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