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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In July, the U.S government invested $400 million in preferred stock, plus warrants, along with $1 billion in funding from JPMorgan and Goldman Sachs to fund a new plant to make rare-earth magnets. Todd Gordon, CNBC, 16 Sep. 2025 In July 2025, the Department of Defense agreed to buy $400 million of convertible preferred stock in MP Materials. H. Sami Karaca, The Conversation, 28 Aug. 2025 Take for example Strategy’s recent $722 million offering of 8.5 million shares of preferred stock in March. Julie Goldenberg, Forbes.com, 19 Aug. 2025 The company declared cash dividends on its common stock and preferred stock, continuing its practice of quarterly dividend payments. Quartz Intelligence Newsroom, Quartz, 25 Mar. 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 9 Oct. 2025.

Legal Definition

preferred stock

see stock

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