VANGUARD PREFERRED STOCK FUND
NSAR-B, 1996-12-19
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<PAGE>      PAGE  1
000 B000000 10/31/96
000 C000000 0000081391
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 VANGUARD PREFERRED STOCK FUND
001 B000000 811-2601
001 C000000 6106691000
002 A000000 100 VANGUARD BOULEVARD
002 B000000 MALVERN
002 C000000 PA
002 D010000 19355
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 N
007 B000000  0
018  000000 Y
019 A000000 Y
019 B000000   94
019 C000000 VANGUARDGR
020 A000001 ASIEL & CO.
020 B000001 13-4933080
020 C000001      8
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020 C000005      0
020 C000006      0
020 C000007      0
020 C000008      0
020 C000009      0
020 C000010      0
021  000000        8
022 A000001 THE VANGUARD GROUP, INC./POOLED CASH ACCT.
022 B000001 23-1945930
022 C000001   1707066
022 D000001         0
022 A000002 LEHMAN BROTHERS INC.
022 B000002 13-2518466
022 C000002     20578
022 D000002     11515
022 A000003 SMITH, BARNEY INC.
022 B000003 13-1912900
022 C000003      6220
022 D000003     15206
<PAGE>      PAGE  2
022 A000004 MERRILL LYNCH PIERCE FENNER & SMITH
022 B000004 13-5674085
022 C000004     10011
022 D000004      9695
022 A000005 MORGAN STANLEY & CO., INC.
022 B000005 13-2655998
022 C000005     14756
022 D000005      4227
022 A000006 ROBERT W. BAIRD & CO., INC.
022 B000006 39-6037917
022 C000006      7955
022 D000006      5378
022 A000007 SALOMON BROTHERS INC.
022 B000007 13-3082694
022 C000007       999
022 D000007     10005
022 A000008 BEAR, STEARNS & CO. INC.
022 B000008 13-3299429
022 C000008         0
022 D000008      9234
022 A000009 OPPENHEIMER & CO., INC.
022 B000009 13-2798343
022 C000009      6392
022 D000009      1259
022 A000010 DILLON, READ & CO.INC.
022 B000010 13-1939216
022 C000010      5177
022 D000010      2017
023 C000000    1789913
023 D000000      89659
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<PAGE>      PAGE  5
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SIGNATURE   GARY P. SOURA                                
TITLE       MANAGER             
 


<TABLE> <S> <C>

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<NAME> VANGUARD PREFERRED STOCK FUND
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<CURRENCY> US
       
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<FISCAL-YEAR-END>                          OCT-31-1996
<PERIOD-START>                             NOV-01-1995
<PERIOD-END>                               OCT-31-1996
<EXCHANGE-RATE>                                      1
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<SENIOR-LONG-TERM-DEBT>                              0
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<SHARES-COMMON-STOCK>                            29533
<SHARES-COMMON-PRIOR>                            32064
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<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                         (4325)
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<EXPENSE-RATIO>                                   0.39
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</TABLE>


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