preference stock

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Related to preference stock: preference shares, cumulative preference shares

Preference stock

A security that ranks junior to preferred stock but senior to common stock in the right to receive payments from the firm; essentially junior preferred stock.

Preferred Stock

Stock in a publicly-traded company without voting rights, but otherwise with more rights than common shares. Preferred stocks receive dividends before common shares and sometimes have guaranteed dividends, while common shares only receive the leftovers. Preferred stocks also have a prior claim on capital in the event of liquidation; if the company is liquidated, all preferred shareholders must be paid off before a single common shareholder. Some preferred stocks are convertible, which means they can be changed into common shares at a certain ratio so that even preferred shareholders without voting rights have the possibility of gaining them. Preferred stocks tend not to appreciate as fast as common stocks.

preference stock

References in periodicals archive ?
The new preference stock is not subject to redemption prior to Jan.
70 series of preference stock at a redemption price of $101 per share, $40 million of its $8.
59375 per share on shares of the Convertible Preference Stock $2.
The board also authorized the redemption of all GM Series E-I Preference Stock.
This is the first time that the company has issued perpetual preference stock since 1974.
Holders of Thermascan preferred stock will receive, based upon the liquidation preference of their preference stock, VTS 10 percent preference stock and warrants to purchase additional shares of VTS 10 percent preference stock.