guaranteed stock

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Guaranteed Stock

A stock in a company for which another company or bank promises to pay dividends in case the issuing company defaults. Because guaranteed stocks carry lower risk, they are usually more expensive than non-guaranteed stocks.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

guaranteed stock

Preferred stock that is issued by one company and guaranteed as to dividends by one or more other companies. Guaranteed stock issues, like guaranteed bonds, are most prevalent among railroads.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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