From Longman Business Dictionarypreference stockˈpreference ˌstock (also preferred stock) [countable, uncountable]FINANCE stock on which, if a company is in financial difficulty, DIVIDENDs may still be paid even if they are not paid on ordinary shares. Dividends on preference stock are usually in the form of fixed interest paymentsThe company’s preferred stock will pay an initial dividend rate of 6% that will rise to 14% in the fourth year. → stock
