what are the main types of preference shares 
there are four main types of preference shares cumulative preferred non cumulative preferred participating preferred and convertible holders of cumulative preferred shares are entitled to receive dividends retroactively for any dividends that were not paid in prior periods whereas non cumulative preferred shares do not carry this provision for this reason cumulative preferred shares will generally be more expensive than non cumulative preferreds similarly participating preferred shares offer the benefit of additional dividends if certain performance targets are reached such as company profits exceeding a specified level convertible preferreds like convertible bonds allow the holder to convert their preference shares into common shares at a specified exercise price 