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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Investors took the dilution, estimated at 1% to 3% depending on the final terms of convertible preferred stock, in stride, presumably calmed by the presence of Berkshire Hathaway as anchor investor. Liz Hoffman, semafor.com, 4 June 2026 Google’s stake is also a less complex position than Amazon’s, which is split between preferred stock and convertible notes with undisclosed conversion terms. Beatrice Nolan, Fortune, 4 June 2026 Its offerings are poised to top Brazilian oil producer Petroleo Brasileiro SA’s roughly $70 billion sale of common and preferred stock in 2010. Bloomberg, Mercury News, 3 June 2026 Over the past several years, the company has issued convertible bonds, equity, and preferred stock to raise capital. Sean Lee, Forbes.com, 21 May 2026 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 Jul. 2026.

Legal Definition

preferred stock

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