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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

preference stock

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.
References in periodicals archive ?
* A quarterly dividend on the Series L preference stock, which would result in a distribution of $0.3125 per security on SCE Trust VI's 5.00% Trust Preference Securities, payable on September 15, 2019, to the shareholder of record on September 13, 2019.
Concurrently, the company's board announced preference stock (USD25 Capital Value) of 6.45% - USD.403125 per share as well as 6.50% - USD.406250 per share.
Related to the deal, Cell Biosciences will raise some USD20m via the issue of Series F preference stock.
The board of directors of electric utility Southern California Edison on Thursday declared a semi-annual dividend of USD31.25 per share on the company's Series E preference stock.
15 December 2011 - Spain's CaixaBank (MCE:CABK) is reportedly preparing for a swap of EUR4.9bn (USD6.4bn) preference stock into convertible bonds and other type of debt instruments in a drive to enhance its solvency, Reuters said today, citing a source in the know.
Microgenix Manufacturing Inc (PINK:MGXMF) said yesterday it has inked a memorandum of understanding to take over Texas-based construction engineering firm Premarc Turnkey Systems Inc for USD990,000 (EUR813,409) in preference stock.
M2 EQUITYBITES-March 2, 2016-Southern California Edison to redeem Series D preference stock on 31 March 2016
BANKING AND CREDIT NEWS-June 10, 2011--AM Best gives "bbb" to USD325m preference stock of PartnerRe(C)2011 M2 COMMUNICATIONS
M2 EQUITYBITES-November 19, 2015-Sirius announces half yearly preference stock dividend of USD37.53 per share
The company is issuing the above debt to refinance its bank loan, buy preference stock held by Ford Motor (NYSE:F) and pay a GBP30m dividend to its shareholders, its first since the company was taken over by a group of investors in 2007.