The financial accounting term preferred stock refers to a class of equities issued by corporations that contains special preferences, or features, that are not present in common stock. Preferred stock dividends are typically paid before those of common stocks; however, they usually don't have the voting rights common shareholders enjoy.
Preferred stocks are often described as a hybrid between common stocks and bonds. The value of preferred stock issued by a company can be found in the owner's equity section of the company's balance sheet.
Generally, preferred stock exhibits one or more of the following features or characteristics:
balance sheet, owner's equity, par value, additional paid-in capital, Class A and Class B stock, cumulative preferred stock, participating preferred stock, callable preferred stock, convertible preferred stock