Business Pitch Dictionary by pitch.dog
Shares, shareholders & voting · Core

Preferred shares

Also called: preference shares, preferred stock

ELI5

A share class with specified preferences over common or ordinary shares.

Used in conversation

“Can we state who receives the right created by preferred shares, and when it applies?”

Pitch context

You will see “Preferred shares” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches shares, shareholders & voting.

Why it matters: In shares, shareholders & voting, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • Preferred stockThe search label “Preferred shares” can route to both entries.
Sources & evidence · 4

Direct term-level sources and supporting source families.