Preference stocks, also known as preferred stocks, are a type of share in a company that offers certain advantages over common stocks. These advantages can include a fixed dividend payment, priority in receiving dividends ahead of common stockholders, and priority in receiving assets in the event of liquidation. Other synonyms for preference stocks include preferred shares, preference shares, and priority shares. These terms are often used interchangeably in financial literature and refer to the same type of security. Investors may choose to invest in preference stocks due to the stability and predictability of their dividend payments, as well as their relatively low volatility compared to common stocks.