Term:
Preferred stock
Definition:
Stock that pays a stipulated dividend to the holder. Preferred stock has a claim prior to that of common stock upon the earnings of a corporation and upon the assets of the corporation in the event of its liquidation. Frequently without voting rights.
Domain:
Finance
Source:
Coordinated Portfolio Investment Survey Guide, Second Edition, International Monetary Fund, 2002, Washington DC. Appendix VI: Definition and Description of Instruments
