Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? preferred stock Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Usually does not carry voting rights. also called preference shares. see also stock, cumulative preferred, non-cumulative preferred, first preferred stock, second preferred stock, accumulated dividend, cumulative dividend, adjustable rate preferred stock, call price, common stock equivalent, convertible preferred stock, dividend in arrears, guaranteed stock, junior equity, participating preferred, warrant. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.