Preferred Stock A class of corporate ownership that offers its holders higher priority over common stock on claims related to earnings and assets (e.g., dividends must be paid prior to common shareholders). Home Resources Startup Law Dictionary Preferred Stock Return to Glossary Need legal help? Schedule a free consultation with a world-class startup attorney on LawTrades. LET'S CHAT Roy G. Business Attorney Heather N. Business Attorney Jared S. Business Attorney Tell us about your project We'll connect you with a vetted attorney in just a few minutes. Trusted by top companies like :