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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The company said the net loss took a hit from the issuance of convertible preferred stock. Jaures Yip, CNBC, 4 Dec. 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 Underwriting commissions and other fees from offerings of preferred stock and convertibles are already proving to be a lucrative business for numerous traditional investment banks and broker-dealers, including Morgan Stanley, Barclays Capital, Moelis & Company, and TD Securities. 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 20 Dec. 2025.

Legal Definition

preferred stock

see stock

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