Preferred stock which dividends are guaranteed by one or more other companies the issuing company. In any event, if the guarantor has a higher credit rating than the issuer whose securities are guaranteed, these securities have greater value.
Stock in which its dividends are guaranteed by an entity other than the issuer. Guaranteed stock becomes, in effect, debenture (unsecured) bonds of the guarantor. See: Debenture; Liquidation; Unsecured Debt