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TeachMeFinance.com - explain Preference stock historic definition... Preference stock -- This is the English designation for stock that is preferred over other classes as to dividends and assets. It is equivalent to what in the United States is called preferred stock when there is only one class of preferred stock or to what is called first preferred when there are two classes. Preference stock is sometimes divided into classes, as first preference, second preference, etc., with the right to dividends in the order named. For additional information see Stock. 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.