Preferred

stock is the English designation for preferred ordinary (common) stock. When for dividend purposes the ordinary stock of a company has been divided into two parts called preferred or “B” stock and deferred or “A” stock the dividend on the A stock is deferred until a fixed amount has been paid on the 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 preierence stock ahead of an ordinary stock in Great Britain the |: B or preferred stock is equivalent to second preferred stock in the United States..: Preference stock is sometimes divided into cla es, as first preference, second preference, etc., with the right to dividends in the order named.. 420