preferred stock


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Related to preferred stock: Convertible preferred stock

preferred stock

n.
Capital stock having priority over a corporation's common stock in the distribution of dividends and often of assets.

preferred stock

n
(Stock Exchange) US and Canadian 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. Also called (in eg Britain, Australia): preference shares

preferred′ stock′


n.
stock that has a superior claim to that of common stock with respect to dividends and often to assets in the event of liquidation.
[1840–50, Amer.]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.preferred stock - stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
stock - the capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity); "he owns a controlling share of the company's stock"
cumulative preferred, cumulative preferred stock - preferred stock whose dividends if omitted accumulate until paid out
Translations

preferred stock

n (US Fin) → Vorzugsaktien pl
References in periodicals archive ?
today announced that it has declared dividends on the following series of its non-cumulative preferred stock (represented by depositary shares, each representing a 1/1,000th interest in a share of preferred stock, except for the Series L preferred stock in which each depositary share represents a 1/25th interest in a share): $236.
On September 23, 1998, Tax Executives Institute submitted the following comments to the Internal Revenue Service concerning the tax treatment of transactions involving "nonqualified preferred stock.
This clarification is consistent with the new temporary and proposed regulations on the receipt in a reorganization of nonqualified preferred stock or the right to acquire nonqualified preferred stock.
The value of the parent's investment was "frozen" at the par value of the preferred stock retained; any future increase in value, if the corporation prospered, and any earnings on the common stock, were shifted out of the parent's taxable estate.
For example, after recapitalizing his stock in the family corporation, a parent might choose to retain the common stock and give the preferred stock to his children.
EARNINGS PER SHARE FOR ESOP CONVERTIBLE PREFERRED STOCK

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