Preferred

Preferred is an adjective and the past participle of the verb prefer. It denotes something regarded as more desirable or suitable than alternatives and is commonly used to indicate selection or priority. The word derives from Latin praeferre, meaning “to carry in front.” In everyday language, people say “the preferred option” or “the preferred candidate” to signal choice or guidance.

As an adjective, preferred modifies nouns to express choice or priority. It is often used in phrases such as “preferred seating,” “preferred vendor,” or “the preferred method.” In grammar it describes a ranking or selection and contrasts with terms like “alternative” or “eligible.” In writing, it can also appear in compound expressions such as “preferred suppliers” or “preferred terms” in contracts.

In finance, “preferred stock” (also called preference shares in some markets) refers to a class of equity with priority over common stock for dividends and in liquidation. It typically carries a fixed dividend and may include features such as cumulative versus non-cumulative, participating versus non-participating, and convertibility. Preferred stock generally lacks voting rights, or has restricted voting, and can exhibit lower price volatility relative to common stock while offering different risk and tax characteristics. Dividends on preferred shares are not tax-deductible to corporations and may be deferred if earnings are insufficient, depending on the issue’s terms.

The term also appears in commercial contexts to designate priority status, such as “preferred supplier” or “preferred customer program,” indicating an entity that meets specific criteria or has negotiated advantageous terms. In summary, preferred signals selection, priority, or favored status in language, finance, and business practice.