Legal Definitions - prior preferred stock

Prior preferred stock is a type of preferred stock that has preference over another class of preferred stock from the same issuer. This preference usually relates to dividend payments or claims on assets.

For example, if a company has two classes of preferred stock, Class A and Class B, and Class A is designated as prior preferred stock, then Class A shareholders will receive their dividends and claims on assets before Class B shareholders.

This type of stock is important for investors to consider when evaluating a company's financial health and potential returns on investment.