Home > Terms > English, UK (UE) > Preferred stock
Preferred stock
A type of stock which is more like a bond than normal shares. Holders can expect a fix dividend forever, much like interest on a loan. Also, in the case of liquidation, capital is paid to holders of preferred stock before the common stockholders. However, preferred stock often comes with limited voting rights.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Stocks & securities
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