preferred stock
- noun
- /prɪˈfɜrd stɑk/
- Specialized
- If we give Daniel preferred stock, some engineer with 10 times his talent gets nothing.
- common and preferred stock
For instance, hybrid instruments such as convertible bonds or convertible preferred stock may be listed on stock or bond exchanges.
- For instance, hybrid instruments such as convertible bonds or convertible preferred stock may be listed on stock or bond exchanges.
- They actually like the idea potentially of like selling puts on NVIDIA and like collecting yield on NVIDIA right now or or just even like bank preferred stocks.
Examples
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Investors often choose preferred stock because it provides fixed dividends and higher priority over common stock.
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In general, there are four different types of preferred stock:
Blog text (18) -
"Regarding our position as of noon on Wall Street, the prices of Denver-Carrington common and preferred stock are still falling."
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The rebate would be paid by the Treasury Department and then exchanged for preferred stock in the company that produced the car.
Blog text (30) -
The main benefit of owning preferred stock is that you have a greater claim on the company's assets than common stockholders.
Blog text (18) -
In 1994, Norilsk paid dividends of 3,314 rubles per share of preferred stock and 1,000 rubles per share of common stock.
Academic text (1996) -
The company issued new preferred stock to attract investors looking for steady income from dividends.
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Many retirees prefer preferred stock for its reliable dividend payments despite not having voting rights.
Synonyms
An investment in a company that pays dividends first but usually gives no voting rights
An investment that gives a fixed payment before other company investors and usually has no voting rights
How Senior
- Specialized
- US
Surface Forms
Morphology
The phrase is compositionally built from 'preferred' (given priority) + 'stock' (a share), so a B1 learner who knows both words can infer it denotes a type of share that receives some preference or priority. However, the precise financial implications (priority in dividends versus typical limits on voting rights) are specialized and not fully predictable from the constituents alone.
Etymology
Preferred stock comes from the idea that some shares are preferred — they are first in line when a company pays money to owners. So these holders are 'paid first' for dividends, even though this kind of stock usually does not give 'voting' rights.