# Preferred stock

> Preferred stock — A class or series of stock with rights common lacks, set out in the charter — usually a liquidation preference, conversion into common, anti-dilution protection, protective provisions and board seats. What investors buy in a priced round, and what a SAFE converts into.

Source: https://lopifi.com/glossary/preferred-stock
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is preferred stock?** In accounting, preferred stock means a class or series of stock with rights common lacks, set out in the charter — usually a liquidation preference, conversion into common, anti-dilution protection, protective provisions and board seats. What investors buy in a priced round, and what a SAFE converts into.

## Words this system refuses for it

- debt
- preference shares in US copy

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** anti-dilution-protection, liquidation-preference, protective-provisions, priced-round, dilution, safe