Which is not a type of Preference Shares:-

The correct answer is Option (4) → Convertible Preference Shares

A preference share carries a preferential right to dividend and to repayment of capital. Beyond these two rights, preference shares are classed by the extra features they carry: they may be participating or non-participating in surplus profits, cumulative or non-cumulative as to dividend, and redeemable or irredeemable as to repayment of capital. Participating, cumulative and irredeemable preference shares are all in this list; convertible preference shares are not, so Option (4) is the answer.

Option (1) Participating Preference Shares — A type of preference share. They may share in the surplus profits besides their fixed dividend.

Option (2) Cumulative Preference Shares — A type of preference share. A dividend missed in one year is carried forward and paid later.

Option (3) Irredeemable Preference Shares — A type of preference share. Preference shares are classed as redeemable or irredeemable by whether their capital is repayable during the life of the company.

Note: In practice, convertible preference shares (which can be converted into equity shares) are also a recognised kind of preference share, so strictly every option names a type of preference share. The answer here follows the list of types given in the NCERT book, which does not name convertible preference shares.