Preferred shares

preferred stock

Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than common stock, and its terms are negotiated between the corporation and the investor. Preferred stock may or may not carry voting rights, and may have superior voting rights to common stock. Preferred stock may carry a dividend that is paid out prior to any dividends to common stock holders. Preferred stock may have a convertibility feature into common stock. Preferred stock holders will be paid out in assets before common stockholders and after debt holders in bankruptcy. Terms of the preferred stock are stated in a "Certificate of Designation".
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Noun
1. stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
(synonym) preferred stock, preference shares
(hypernym) stock
(hyponym) cumulative preferred, cumulative preferred stock

Preferred shares give investors a fixed dividend from the company's earnings. And more importantly: preferred shareholders get paid before common shareholders. See: preferred stock.

A share in a company that has some kind of special right or privilege attached to it, such as that it is distinguished from the company’s common shares. - (read more on Preferred shares)