Flow-through shares

Go down



GMT + 3 Hours Flow-through shares

In Canada, companies in sectors like mining and resources can deduct exploration and development expenses. They are allowed to pass on the tax deduction to investors through a special type of common share called a flow-through share. When you buy flow-through shares, your money is locked in for up to 2 years – you can’t get your money out for any reason.
Learn more about flow-through shares and their tax benefits from the Canada Revenue Agency.
Where to buy flow-through shares
You can buy flow-through shares from an investment firm or directly from the company that issues the shares. You can also buy them through limited partnerships or mutual funds, which offer a diversified portfolio of shares with professional investment management.


Before you invest, find out about fees. You may have to pay a sales commission to your adviser and fees charged by the portfolio manager.
3 key risks
Offered by new, small companies – These companies are often in the exploration stage and aren’t yet making a profit.

Speculative investment – It can take years for a mining or resource company’s exploration work to pay off with a find – if it finds anything at all.

Holding period – Flow-through shares have a holding period of up to 2 years. You can’t get your money out during this period, no matter how the company is doing or what you need the money for.

Flow-through shares also have similar risks to common shares. Learn more about these risks.
Flow-through shares lock in your money for up to 2 years. You can’t get your money out, no matter how the company is doing or what you need your money for.

Last updated June 18, 2017
Akram Tahseen
Deep Bench
Deep Bench

Libra Rat
Posts : 87
Join date : 2017-06-14
Age : 21
Location : Shakarparian, Islamabad
--Mood-- : Mellow

Character sheet
155/500  (155/500)

Back to top Go down

- Similar topics
Share this post on: diggdeliciousredditstumbleuponslashdotyahoogooglelive

Permissions in this forum:
You cannot reply to topics in this forum