Preferred Stock definition: Copy, customize, and use instantly
Introduction
The term "Preferred Stock" refers to a class of ownership in a corporation that has a higher claim on assets and earnings than common stock. Preferred stockholders typically receive dividends before common stockholders and have priority over common stock in the event of liquidation. This term is important for outlining the rights and preferences of investors, especially in cases of dividends and liquidation events.
Below are various examples of how "Preferred stock" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Preferred Stock" as a dividend priority share
This definition ties "Preferred Stock" to its priority in receiving dividends before common stockholders.
"Preferred Stock" means a class of stock in the corporation that entitles the holder to receive dividends before any dividends are paid to common stockholders.
Definition of "Preferred Stock" as a liquidation preference
This definition connects "Preferred Stock" to its higher priority in the event of liquidation.
"Preferred Stock" refers to a class of stock that grants the holder priority over common stockholders in the event of liquidation, ensuring the repayment of investment before common stockholders receive any remaining assets.
Definition of "Preferred Stock" as a non-voting stock
This definition links "Preferred Stock" to its characteristic of not providing voting rights.
"Preferred Stock" means a class of stock that does not carry voting rights but provides the holder with priority in dividends and liquidation proceedings.
Definition of "Preferred Stock" as a convertible share
This definition connects "Preferred Stock" to its potential for conversion into common stock.
"Preferred Stock" refers to a class of stock that is convertible into common stock at the holder’s discretion, under the terms outlined in the corporate charter.
Definition of "Preferred Stock" as a fixed dividend share
This definition ties "Preferred Stock" to its fixed dividend feature.
"Preferred Stock" means a class of stock that entitles the holder to receive a fixed dividend, which is paid before any dividends are paid to common stockholders.
Definition of "Preferred Stock" as a cumulative stock
This definition links "Preferred Stock" to its cumulative nature in dividend payments.
"Preferred Stock" refers to a class of stock where any unpaid dividends accumulate and must be paid out before dividends can be distributed to common stockholders.
Definition of "Preferred Stock" as a participating stock
This definition connects "Preferred Stock" to its ability to participate in additional profits.
"Preferred Stock" means a class of stock that entitles the holder to receive dividends at a fixed rate and, in some cases, additional dividends if the company exceeds certain profit levels.
Definition of "Preferred Stock" as a redeemable stock
This definition ties "Preferred Stock" to its redeemability by the corporation.
"Preferred Stock" refers to a class of stock that can be redeemed by the corporation at its discretion, typically at a predetermined price or under specific conditions.
Definition of "Preferred Stock" as a senior stock
This definition connects "Preferred Stock" to its seniority over common stock.
"Preferred Stock" means a class of stock that holds seniority over common stock, entitling the holder to receive dividends and liquidation proceeds before common stockholders.
Definition of "Preferred Stock" as a participating preferred stock
This definition links "Preferred Stock" to its ability to share in both fixed and excess profits.
"Preferred Stock" refers to a class of stock that entitles the holder to receive a fixed dividend and a share in any excess profits or residual assets after the fixed dividend is paid.
Definition of "Preferred Stock" as a non-cumulative dividend share
This definition ties "Preferred Stock" to its non-cumulative dividend nature.
"Preferred Stock" means a class of stock that does not accumulate unpaid dividends; if the dividend is not declared in any given year, the holder does not have a right to receive those dividends in the future.
Definition of "Preferred Stock" as a callable stock
This definition connects "Preferred Stock" to its callable nature by the issuing company.
"Preferred Stock" refers to a class of stock that can be called back by the issuing company at its discretion, usually at a predefined price.
Definition of "Preferred Stock" as a voting preferred stock
This definition links "Preferred Stock" to its voting rights feature.
"Preferred Stock" means a class of stock that grants the holder limited or full voting rights, depending on the terms outlined in the corporate agreement.
Definition of "Preferred Stock" as a fixed return investment
This definition ties "Preferred Stock" to its fixed rate of return for investors.
"Preferred Stock" refers to a class of stock that guarantees the holder a fixed return in the form of dividends, regardless of the company’s profitability.
Definition of "Preferred Stock" as an adjustable dividend stock
This definition connects "Preferred Stock" to its ability to have variable dividends based on certain factors.
"Preferred Stock" means a class of stock where the dividend rate is adjustable and can change according to the performance or profitability of the company.
Definition of "Preferred Stock" as a hybrid stock
This definition links "Preferred Stock" to its characteristics of both equity and debt instruments.
"Preferred Stock" refers to a class of stock that has qualities of both debt and equity, offering fixed dividends like bonds while also having ownership characteristics like common stock.
Definition of "Preferred Stock" as an equity-based investment
This definition ties "Preferred Stock" to its role as an equity investment.
"Preferred Stock" means a class of equity investment that represents ownership in the company, offering preferential treatment in dividends and liquidation preferences.
Definition of "Preferred Stock" as a special preference stock
This definition connects "Preferred Stock" to its special preferences in certain conditions.
"Preferred Stock" refers to a class of stock that grants special rights or preferences in specific situations, such as receiving priority dividends or liquidation rights.
Definition of "Preferred Stock" as a fixed-price convertible stock
This definition links "Preferred Stock" to its feature of being convertible at a fixed price.
"Preferred Stock" means a class of stock that can be converted into common stock at a fixed conversion price, providing flexibility for the holder.
Definition of "Preferred Stock" as a low-risk investment
This definition ties "Preferred Stock" to its characteristic of being a relatively low-risk investment compared to common stock.
"Preferred Stock" refers to a type of stock that is considered a lower-risk investment due to its fixed dividend payments and priority in case of liquidation.
Definition of "Preferred Stock" as a restricted stock
This definition connects "Preferred Stock" to its restricted nature in terms of transferability.
"Preferred Stock" means a class of stock that has restrictions on transferability or resale, typically subject to specific company or regulatory rules.
Definition of "Preferred Stock" as a priority payment stock
This definition links "Preferred Stock" to its entitlement to priority payment before common stock.
"Preferred Stock" refers to a class of stock that ensures the holder receives payment before common stockholders in the event of any cash distribution.
Definition of "Preferred Stock" as a convertible to debt security
This definition ties "Preferred Stock" to its potential conversion into a debt security.
"Preferred Stock" means a class of stock that can be converted into debt securities under specific terms, offering a hybrid option for investors.
Definition of "Preferred Stock" as a dividend-capped stock
This definition connects "Preferred Stock" to a dividend cap that limits maximum payouts.
"Preferred Stock" refers to a class of stock where dividends are capped, providing the holder with a fixed maximum dividend regardless of the company's profits.
Definition of "Preferred Stock" as a special dividend stock
This definition links "Preferred Stock" to a feature of receiving special dividends based on company performance.
"Preferred Stock" means a class of stock that may be entitled to additional special dividends depending on the company’s earnings or discretion of the board.
Definition of "Preferred Stock" as a stock with exit rights
This definition ties "Preferred Stock" to exit rights that allow the holder to sell or redeem the stock under certain conditions.
"Preferred Stock" refers to a class of stock that grants the holder exit rights, allowing them to sell or redeem their shares under specific conditions defined in the agreement.
Definition of "Preferred Stock" as a preferred equity share
This definition connects "Preferred Stock" to its role as a preferred equity investment in the company.
"Preferred Stock" means a class of equity security that ranks above common stock in terms of dividend payments and liquidation preferences.
Definition of "Preferred Stock" as a non-redeemable stock
This definition links "Preferred Stock" to its characteristic of not being redeemable by the company.
"Preferred Stock" refers to a class of stock that cannot be redeemed by the company at its discretion and remains outstanding until the conditions for conversion or liquidation are met.
Definition of "Preferred Stock" as a stock with limited rights
This definition ties "Preferred Stock" to the limitation of its rights compared to common stock.
"Preferred Stock" means a class of stock that has limited voting or other rights but offers preferential treatment in dividends and liquidation events.
Definition of "Preferred Stock" as a fixed-rate dividend stock
This definition ties "Preferred Stock" to its feature of offering a fixed dividend rate.
"Preferred Stock" means a class of stock that entitles the holder to receive a fixed dividend, which is paid out before any dividends are distributed to common stockholders.
Definition of "Preferred Stock" as a participating stock
This definition connects "Preferred Stock" to its ability to participate in additional earnings or profits.
"Preferred Stock" refers to a class of stock that entitles the holder to receive fixed dividends and, in certain situations, to participate in additional profits or dividends beyond the fixed amount.
Definition of "Preferred Stock" as a senior class of stock
This definition links "Preferred Stock" to its seniority in the payment hierarchy during liquidation.
"Preferred Stock" means a class of stock that has priority over common stock in receiving dividends and liquidation proceeds.
Definition of "Preferred Stock" as a redeemable stock
This definition ties "Preferred Stock" to its ability to be redeemed by the issuing company.
"Preferred Stock" refers to a class of stock that the issuing company can buy back at its discretion, usually at a specified price or within a defined period.
Definition of "Preferred Stock" as a non-voting equity
This definition connects "Preferred Stock" to its lack of voting rights in company matters.
"Preferred Stock" means a class of equity security that does not grant the holder voting rights in company decisions, except in specific situations outlined in the corporate charter.
Definition of "Preferred Stock" as a convertible share
This definition links "Preferred Stock" to its ability to be converted into common stock.
"Preferred Stock" refers to a class of stock that is convertible into common stock at the holder's option, under the terms specified in the company’s agreement.
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