A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred shares pay a fixed dividend that is paid prior to the common stock dividend, stated in a dollar amount or as a percentage of par value. This stock does not usually carry voting rights. Preferred shares have characteristics of both common stock and debt.

Preferred shares values may change between US and non-US companies, along with the calculation rule used in the calculation of this item.