# How to Calculate Preferred Stock Outstanding

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Preferred stock is a type of stock that pays a fixed dividend rate based on the par value, or issue price, of the preferred stock. In most cases, preferred stockholders have no voting rights, but receive payment of dividends before common shareholders. In addition, in the event of liquidation, preferred stockholders will also receive payment prior to common shareholders. You can determine the value of preferred stock outstanding by looking at a company's balance sheet and preferred stock prospectus.

Determine the number of preferred shares outstanding. You can find this information on the company's balance sheet. For example, assume a company has 100,000 shares of preferred stock outstanding.

Determine the par value of a single share of the preferred stock. You can find this information on the prospectus for the preferred stock. For example, assume the par value of the preferred stock \$12.

Multiply the number of preferred shares outstanding by the par value of the preferred stock. Continuing the same example, \$100,000 x \$12 = \$1,200,000. This figure represents the dollar value of the preferred stock outstanding.