Preferred shares come in many shapes and sizes. Here are the major types and their defining characteristics:

> STRAIGHT, A.K.A. PERPETUAL. This share has no maturity date, and pays its stated dividend indefinitely. It is typically callable after a certain date at the discretion of the issuer.

> RETRACTABLE, A.K.A. TERM. The maturity date is set at the time of issue. A five-year retractable preferred would have a $25 par value, and be repayable five years from the date of issue.

> SOFT RETRACTABLE. This is a preferred share that has its retraction value payable in cash or in an equal value of common stock of the issuer, usually at the discretion of the issuer.

> FIXED-RATE. This provides for a set dividend upon issue, usually paid quarterly, and often stated as a percentage based on the par value.

> FLOATING-RATE. The shares provide a dividend that is deter-mined by reference to a market interest rate, such as the prime rate.

> CUMULATIVE. Any skipped dividends are accumulated until paid. Issuers must pay missed dividend payments before paying any dividends on common shares.

> NON-CUMULATIVE. These shares do not accumulate dividends that are in arrears. Dividends can be suspended without penalty, but there is usually a requirement that common share dividend payments also be suspended until preferred dividends resume.