preferred stock

Definition of "preferred stock"
  1. A type of stock that grants its holder priority for dividends and asset distribution in case of the company's liquidation, but without voting rights
How to use "preferred stock" in a sentence
  1. She decided to invest in preferred stock to earn regular dividends.
  2. On liquidation of the company, preferred stock shareholders will be paid first.
  3. Despite their non-voting rights, preferred stock holders enjoy priority in dividend payouts.

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