Deferred

stock. Stock which is to realize no dividend until some future contingent event, as when the net earnings shall have amounted to more than enough to pay a dividend on the common stock. Deferred stock is rarely i ued in the United States. In Great Britain when an ordinary (common) stock has been divided into two parts, one part, called deferred, receives no dividend until the other part, called preferred, has received a dividend at a fixed rate. The deferred stock is called A stock and the preferred stock is called B stock. This B or preferred stock is not the same as preferred stock in the United States. What in the United States is called preferred stock is in Great Britain called preference stock and preference stock in Great Britain may be divided into two or more cla es called first preference, second preference, etc., just as preferred stock in the United States may be divided: into two or more cla es called first preferred, second preferred, etc. When, however, there is but one cla of preference stock ahead of an ordinary stock in Great Britain the B or preferred stock is equivalent to second preferred stock in the United States.