preferred stock

noun

: stock guaranteed priority by a corporation's charter over common stock in the payment of dividends and usually in the distribution of assets

Examples of preferred stock in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Take for example Strategy’s recent $722 million offering of 8.5 million shares of preferred stock in March. Julie Goldenberg, Forbes.com, 19 Aug. 2025 Here are the Trump administration’s notable actions in managing private businesses directly. MP MATERIALS OWNERSHIP STAKE In July, the Department of Defense became the largest shareholder of rare earth mining company MP Materials, agreeing to buy $400 million in preferred stock. Joseph Lawler, The Washington Examiner, 18 Aug. 2025 The Defense Department agreed to purchase $400 million of the company’s preferred stock, making the federal government MP’s largest shareholder. Spencer Kimball, CNBC, 8 Aug. 2025 See All Example Sentences for preferred stock

Word History

First Known Use

circa 1859, in the meaning defined above

Time Traveler
The first known use of preferred stock was circa 1859

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Cite this Entry

“Preferred stock.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/preferred%20stock. Accessed 6 Sep. 2025.

Legal Definition

preferred stock

see stock

More from Merriam-Webster on preferred stock

Last Updated: - Updated example sentences
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