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preferred stock :: legal definition


Preferred stock - n. a class of shares of stock in a corporation which gives the holders priority in payment of dividends (and distribution of assets in case of dissolution of the corporation) over owners of "common" stock at a fixed rate. While the assurance of first chance at profits is a psychological and real benefit, preferred stock shareholders do not participate in higher dividends if the corporation makes large profits, and usually cannot vote for directors.

See also: common stock corporation dividend stock and Related Law Terms ↓


Related Law Terms

articles of incorporation :: n. the basic charter of a corporation which spells ... year's taxes. See also: corporation
blue sky laws :: n. laws intended to protect the public from purcha ... e sky." See also: corporation stock
bond :: n. 1) written evidence of debt issued by a company ... good up to the amount of the bond.
capital stock :: n. the original amount paid by investors into a co ... price. See also: corporation stock
common stock :: n. stock in a corporation in which dividends (payo ... oration preferred stock share stock
corporation :: n. an organization formed with state governmental ... ation public corporation securities
dividend :: n. a portion of profit, usually based on the numbe ... . See also: corporation shareholder
franchise :: 1) n. a right granted by the government to a perso ... on property, income or profits tax.
incorporate :: v. 1) to obtain an official charter or articles of ... te by reference incorporation stock
insider :: n. someone who has a position in a business or sto ... ange Act. See also: insider trading
issue :: 1) n. a person's children or other lineal descenda ... the body incorporation share stock
limited partnership :: n. a special type of partnership which is very com ... mited liability partner partnership
non-profit corporation :: n. an organization incorporated under state laws a ... harity corporation cy pres doctrine
par :: n. 1) an equal level. 2) the face value of a stock ... common stock preferred stock stock
preemptive right :: n. the right of a shareholder in a corporation to ... also: corporation shareholder stock
promotional stock :: n. stock issued in a newly formed corporation and ... assets or money. See also: promoter
prospectus :: n. a detailed statement by a corporation required ... rporation limited partnership stock
securities :: n. generic term for shares of stock, bonds and deb ... ee also: bond debenture share stock
self-dealing :: n. in the stock market, using secret "inside" info ... ederal Securities and Exchange Act.
shareholder :: n. the owner of one or more shares of stock in a c ... : corporation shareholders' meeting
stock certificate :: n. printed document which states the name, incorpo ... . See also: corporation share stock
transfer agent :: n. a person or company retained by a corporation t ... stockbroker. See also: share stock
treasury stock :: n. stock of a private corporation which was issued ... be entitled. See also: share stock
unissued stock :: n. a corporation's shares of stock which are autho ... poration share stock treasury stock
watered stock :: n. shares of stock of a corporation which have bee ... . See also: corporation share stock

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - P

paid into court :: adj. referring to money deposited with the clerk o ... differences. See also: interpleader
pain and suffering :: n. the physical and mental distress suffered from ... l damages special damages suffering
palimony :: n. a substitute for alimony in cases in which the ... the relationship. See also: alimony
pander :: 1) v. to solicit customers for a prostitute. 2) n. ... ons or favors. See also: prostitute
panderer :: n. 1) a person who panders or solicits for a prost ... special interests. See also: pander
panel :: n. the list of people selected to appear for jury ... or jury duty. See also: jury venire
paper hanger :: n. slang for a person who criminally writes and ca ... ey in them. See also: forgery fraud
par :: n. 1) an equal level. 2) the face value of a stock ... common stock preferred stock stock
paralegal :: n. a non-lawyer who performs routine tasks requiri ... h less than that for the attorneys.
paramount title :: n. a right to real property which prevails over an ... n's claim of title. See also: title
parcel :: n. a defined piece of real estate, usually resulti ... See also: real estate real property
pardon :: 1) v. to use the executive power of a Governor or ... also: amnesty commutation reprieve
parens patriae :: (paa-rens pat-tree-eye) n. Latin for "father of hi ... pport custody divorce guardian ward
parent :: n. the lawful and natural father or mother of a pe ... natural parent. See also: adoption
parental neglect :: n. a crime consisting of acts or omissions of a pa ... usive or sexually predatory person.
pari delicto :: adj. equal fault. See also: in pari delicto ... al fault. See also: in pari delicto
parish :: n. 1) a geographic area served by a church (partic ... overnmental equivalent of a county.
parody :: n. the humorous use of an existing song, play, or ... l significance. See also: copyright
parol :: adj. oral. See also: parol evidence rule ... oral. See also: parol evidence rule
parol evidence rule :: n. if there is evidence in writing (such as a sign ... or contradict the written document.