Preferred Stock Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Preferred Stock, written in plain English, along with examples of how it is used.

What is Preferred Stock?

n.In a corporation priority given to a group of shareholders in payment of dividend which is a fixed percentage and does not depend upon the profits made or distribution of assets if the corporation is getting dissolved.They cannot demand higher dividend if the company makes higher profits and they dont exercise voting rights as they have minimum risk involved. ([source](