# Preferred Shares

**IRI:** https://folio.openlegalstandard.org/RBNLtCtiehXHqrqSiI8me4X

## Labels

**Preferred Label:** Preferred Stock

**Alternative Labels:**

- Priority Shares

## Definition

Preferred Shares represent a class of ownership in a company that confers preferential treatment regarding dividend payments and asset distribution in the event of liquidation. These shares typically do not carry voting rights but offer a fixed dividend that must be paid before any dividends are distributed to common shareholders.

## Sub Class Of

- https://folio.openlegalstandard.org/RCMCyg29yJdESbSXnNRLABk

**Deprecated:** False