Articles on: Investment Glossary

Preferred Stock

(1) A class of stock with a claim on the company's earnings before payment may be made on the common stock and usually entitled to priority over common stock if the company liquidates. It is usually entitled to dividends at a specified rate when declared by the Board of Directors and before payment of a dividend on the common stock.
(2) An accounting measure carried at par (typically $100) on the books of the corporation.

Updated on: 24/04/2023

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