Preferred Stock or preferred shares or preference shares

Source: wikipedia

Is typically a higher ranking stock than common stock, and its terms are negotiated between the corporation and the investor.

Preferred stock may carry superior voting rights to common stock or may not carry any voting rights at all. Preferred stock may carry a dividend that is paid out prior to any dividends to common stock holders. Preferred stock may have a convertibility feature into common stock. Preferred stock holders will be paid out in assets before common stockholders and after debt holders in bankruptcy. Terms of the preferred stock are stated in a "Certificate of Designation".

The main benefit to owning preferred stock is that the investor has a greater claim on the company's assets than common stockholders. Preferred shareholders always receive their dividends first and, in the event the company goes bankrupt, preferred shareholders are paid off before common stockholders.