A security in a company, which entitles the owner to certain specified rights (notably the right to receive dividends) "in preference" to the rights of holders of common shares.
An ownership security that offers a specified, fixed annual dividend, which is paid out before common stock dividends. Preferred shareholders do not have voting rights but can exercise a greater claim than common shareholders on company assets in the event of liquidation.
a special type of stock that regularly pays you a set amount of money out of the company's profits called dividends
A share with a preferred claim ahead of common shareholders on assets of the corporation in the event of bankruptcy or liquidation and ahead in claiming dividends.
A class of share capital that entitles its owners to certain preferences over common shareholders such as a fixed rate of prior dividend and return of the stock's par value in a liquidation. Preferred shares usually only have voting rights when their dividends are not being paid.
A security that provides an income similar to that of a bond. Preferred shares of Canadian companies qualify for the dividend tax credit. Preferred shares are formally classed as "equities", but are similar in risk profile to corporate bonds and can be used as a substitute for bonds in a non-registered investment account. Additional definitions are given in the section on Preferred Shares.
Share granting special rights to its owner.
A class of share with a fixed dividend that has preference over a company's common share in the payment of dividends and the liquidation of assets. There are several kinds of preferred share, among them adjustable-rate prefereds and convertible prefereds.
An ownership security, senior to the common stock of a corporation, with preferred claim on assets in case of liquidation and a specified annual dividend.
It is an equity security, which has a priority relative to ordinary common shares for dividends and return of par amount in the event of a corporate liquidation. Often, preferred shares are nonvoting equity interests. However, a default in the payment of that issue's preferred dividend or other covenant breach may temporarily give the preferred holders voting powers. Preferred shares can have convertible, cumulative, participating, voting, or other special features.