These are the types of preference shares:

  1. Cumulative : Any dividends missed by the company will be made up in the future.
  2. Non-cumulative: Missed dividends do not accumulate. These shares usually offer higher yields to compensate for the higher risk.
  3. Redeemable/callable: The issuing company can buy back these shares at a future date for a predetermined price, similar to some bonds.
  4. Perpetual: These do not have a redemption date, and investors must sell them on the market to recoup their investment.