preferred equity


A measure of equity which only takes into account the preferred stockholders, and disregards the common stockholders. It is equal to shareholders' equity minus common equity.

For more information see Common Stock vs. Preferred Stock, and Stock Classes at

Use preferred equity in a sentence

You should always try to keep a hold of your preferred equity since it is the one that you like the most.

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There was a generous amount of preferred equity, and that was quite pleasing to a few folks, even if others were less than impressed.

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As an incentive and a bonus for doing such great work the previous quarter, John received preferred equity in the company at the discretion of his boss.

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