Quick Definition
The value of the total preferred stock issued by a company.
Explanation of Preferred Stock Value
Also called the Value of Preferred Stock, or the Preferred Stock Account and listed on the Balance Sheet, the Preferred Stock Value is the estimation of the total value of the preferred stock shares outstanding. The Value of the Preferred Stock is often calculated by taking the stated or par value of the stock times the number of preferred stock shares outstanding.
Importance of Preferred Stock Value
The Preferred Stock Value will often stay relatively the same, unless the company issues more shares of preferred stock or actually buys back some of its stock. Note that the Preferred Stock Value is separate from any preferred stock dividend amounts.
