preference share

noun [C] (also preferred share, mainly UK also preferential share) FINANCE, STOCK MARKET

Definition

› a share in a company that gives the owner the right to receive a dividend (= part of the company's profit) before dividends are paid to owners of common shares, or when dividends on common shares are not paid at all → See also common share, participating preference share, preference stock, preferred stock

(Definition of preference share noun from the Cambridge Business English Dictionary © Cambridge University Press)