(1) Stock with more limited rights than ordinary stock. This means that holders of deferred stock only have a claim on earnings once the dividend has been distributed to ordinary shareholders. Opposite: preferred stock; preferred shares; preference shares; preference stock.

(2) A share that does not have any rights to the assets of a company undergoing bankruptcy until all common and preferred shareholders are paid.

(3) A method of stock payment to directors and executives of a company through the deposit of shares into a locked account. The value of these shares fluctuates with the market and they cannot be accessed by the beneficiaries for the purpose of liquidation until they are no longer employees of the company.

(4) A share generally issued to company founders that restricts their receipt of dividends until dividends have been distributed to all other classes of shareholders.

Synonym for deferred stock.