Legal Definition and Related Resources of Preferred Stock
Meaning of Preferred Stock
See preference share .
Preferred Stock Alternative Definition
Corporate stock entitled to priority in payment of dividends, or to a higher rate of dividends.
Financial Definition of Preferred Stock
A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred stock pays a fixed dividend that is paid prior to the common stock dividend, stated in a dollar amount or as a percentage of par value. This stock does not usually carry voting rights. The stock shares characteristics of both common stock and debt.
Legal Definition of Preferred Stock
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. 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 – depending upon the terms of the issue. (See: Cumulative preferred, Participating preferred)
Related Entries of Preferred Stock in the Encyclopedia of Law Project
Browse or run a search for Preferred Stock in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.
Preferred Stock in Historical Law
You might be interested in the historical meaning of this term. Browse or search for Preferred Stock in Historical Law in the Encyclopedia of Law.
Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Preferred Stock in the Legal Abbreviations and Acronyms Dictionary.
Related Legal Terms
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| Resource | Description |
|---|---|
| Preferred Stock in the Dictionary | Preferred Stock in our legal dictionaries | Browse the Legal Thesaurus | Find synonyms and related words of Preferred Stock |
| Legal Maxims | Maxims are established principles that jurists use as interpretive tools, invoked more frequently in international law |
| Legal Answers (Q&A) | A community-driven knowledge creation process, of enduring value to a broad audience |
| Related topics | Preferred Stock in the World Encyclopedia of Law |
Notice
This definition of Preferred Stock is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.
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| https://legaldictionary.lawin.org/preferred-stock/ | The URI of Preferred Stock (more about URIs) |
Preferred Stock Definition (in the Accounting Vocabulary)
The New York State Society of Certified Public Accountants offers the following definition of Preferred Stock in a way that is easy for anybody to understand: Type of CAPITAL STOCK that carries certain preferences over COMMON STOCK, such as a prior claim on DIVIDENDS and ASSETS.
United States Tax Concept of Preferred Stock
A higher class of stock than common stock. Preferred shareholders are paid their dividends before common shareholders and have a preference claim on any assets and liquidation proceeds.
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