Preferred shares are so called because they are usually preferred by most persons over other kinds of shares.

Name: Preferred shares are so called because they are usually preferred by most persons over other kinds of shares.
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Quizplus · Accepted Answer

Preferred shares are called "preferred" because they have preferential rights over common shares, such as priority in dividend payments and asset distribution in case of liquidation, not because they are preferred by most investors.

Preferred Shares Are So Called Because They Are Usually Preferred