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Browse terms140

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Preferred Stock

Equity with negotiated priority over common stock, potentially including liquidation preferences, dividends, anti-dilution rights, conversion rights, and class voting protections.

What traders should verify

For Preferred Stock, trace the instrument count, rights, price or conversion terms, vesting or maturity, measurement date, and later changes in filings.

Do not conflate

Do not treat Preferred Stock as proof that shares are issued, outstanding, freely tradable, converted, exercised, vested, or sold unless the evidence establishes that state.

Primary source

SEC definition

Source boundary: this glossary reflects SEC staff views and is not a Commission rule, regulation, or statement. Check the linked source for current wording and legal context.

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