preferred stock

noun
stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation.

Origin:
1840–50, Americanism

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World English Dictionary
preferred stock
 
n
(US), (Canadian) Also called (in eg Britain, Australia): preference shares shares representing part of the capital issued by a company and entitling their holders to priority with respect to both net profit and net assets. Preferred stock usually carries a definite rate of dividend that is generally lower than that declared on common stock

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Example sentences
Most of the transactions are purchases of preferred stock with warrants to buy additional stock.
Preferred stock is senior to equity in liquidation but junior to other creditors.
The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders.
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