Preferred stock
Preferred stock is an equity class with rights that may differ from common stock, including preferences on distributions or liquidation. Terms vary by company.
Why it matters to a capital raiser
I explain the preference and other rights alongside the company's capitalization.
Related terms
- Equity
- Liquidation preference
A term can mean something different in a particular deal, so read it with the governing documents. General education only. Not legal, tax or investment advice.