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TeachMeFinance.com - explain Deferred stock historic definition... 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 issued 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 classes called first preference, second preference, etc., just as preferred stock in the United States may be divided into two or more classes called first preferred, second preferred, etc. When, however, there is but one class 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. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.