Glossary · Ownership
Preferred stock
A class of shares investors usually buy in priced rounds. It often comes with extra protections — like getting money back first in a sale — compared to common stock.
Related: Common stock · Liquidation preference · Participating preferred
A bit more nuance▾
- “Preferred” describes priority on payouts, not “better people.”
- Terms stack across Series A, B, etc. — the preference stack matters at exit.
Go deeper▾
Discussion questions▾
- What happens to founders if the company sells for just above raised capital?
- How many preferred series are on your cap table today?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.