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English definition of “preferred stock”

preferred stock

noun [C]
 
 
(also preference stock) FINANCE, STOCK MARKET
a share or group of shares 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 stock, participating preferred stock, preference share, preferred share
(Definition of preferred stock from the Cambridge Business English Dictionary © Cambridge University Press)
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