There are eight types of preference shares : 
(i) Cumulative Preference shares :
As the word indicates, all dividends are carried forward until specified, and paid out only at the end of the specified period.
(ii) Non-Cumulative Preference shares :
The opposite of cumulative, obviously. Dividends are paid out of profits for every year. There are no arrears carried over a time period to be paid at the end of the term
(iii) Redeemable Preference shares :
Such preference shares can be claimed after a fixed period or after giving due notice.
(iv) Non-Redeemable Preference shares :
Such shares cannot be redeemed during the lifetime of the company, but can only be obtained at the time of winding up (liquidation) of assets.
(v) Convertible Preference shares :
These shares can be converted into equity shares after a tinme period or as per theconditions laid doWn in the terms.
(vi) Non-convertible Prcference shares :
Non-convertible preference shares cannot be, at any time , converted into equity shares.
(vi) Participating Preference Shares :
Such shares have the right toparticipate in any additional profits, after paying the equity shareholders.
(viii) Non-Participating Preference shares :
Non-participating preference shares do not possess any right to participate in surplus profits or any surplus gained at the timeof liquidation of the company.

When shares are issued at a price above the face or nominal value, they are said to be issued at a premium. For example, a share having the face value of Rs. 10 is issued at Rs.12. Here, Rs.2 is the premium. The amount of share premium has to betransferred to an account called the 'Securities Premium Account! This account is capital in nature and can only be utilized for the purposes specified by the Act.999
(i) To write off preliminary expenses.
(ii) To write off the expenses of issue, or commission paid, or. discount allowed, on issue of shares or debentures of the company.
(iii) To provide for the payment of premium on the redemption of any redeemable preference shares or debentures of the company.
Thus, securities premium is not available for distribution of dividend.