The main classes of shares are ordinary shares and preference shares.
Ordinary shares, also known as common shares, are the most common type of share issued by a company. These shares represent ownership in a company and typically give the shareholder voting rights and the right to receive dividends. The dividends paid on ordinary shares are not fixed and can vary depending on the company's profitability and other factors.
Preference shares, on the other hand, are a type of share that gives the shareholder a fixed dividend payment before any dividends are paid to holders of ordinary shares. This means that preference shareholders have priority over ordinary shareholders when it comes to receiving dividend payments. However, preference shareholders do not usually have voting rights in the company.
Companies may issue different classes of shares to meet specific investor needs or to raise capital in a more flexible way. For example, a company may issue different classes of preference shares with different dividend rates or redemption features. However, the two main classes of shares that are most commonly issued by companies are ordinary shares and preference shares.
Therefore, the correct answer is option C, ordinary shares and preference shares.