Prior Preferred

prior preferred

A class of preferred stock that has preference over one or more other classes of preferred stock of the same issuer. Preference may be with respect to payment of dividends and/or claims on assets. Also called preference stock. Compare second preferred.

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Prior Preferred

Describing a preferred stock that has priority over another preferred stock. This occurs when a publicly-traded company has more than one class of preferred stock. Thus, while all preferred stock receives dividends before common stock, a prior preferred stock receives dividends before other preferred stock.