What are the different types of shares in a limited company?

There are two types of shares in a limited company.

1. Preference shares : They receive an agreed percentage rate of dividend before ordinary shareholders get anything. They generally don't have voting rights and cannot take part in the decision-making process of the business.

2. Ordinary shares : They receive the remainder of the total profits available for dividends. There is no upper limit to the amounts of dividends they can receive. Ordinary shareholders have voting rights in the firm and play an active part in the management of the business.