A roundup of investment ideas for active investors
The short answer is yes. But to understand what happened here, we need a quick lesson in split share corporations. These complex investment vehicles are marketed to retail investors seeking income, but they can deliver unpleasant surprises, as we’ll see.
Split preferreds are the more stable and predictable of the two classes. Generally, they are first in line for the dividends spun off by the underlying portfolio of stocks. Upon windup of the split share company – the securities typically have a termination date that is often extended – the preferreds also have first claim on the capital of the portfolio, up to a certain amount .
The leveraged structure is great when stock prices are rising, because the capital shares experience an even bigger gain. But when the underlying stocks are falling, the loss is magnified for capital share investors.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JoJo Siwa 'not sure why' she didn't get an invite to Nickelodeon Kids' Choice AwardsJoJo Siwa says she's not sure why she didn't score an invite to the '2022 Nickelodeon Kids' Choice Awards.'
Read more »
Matt Gurney: Why Pierre Poilievre is talking about housingIdentifying the problem is easy. Fixing it is going to be, really hard
Read more »
Why Canadians aren’t getting their COVID boosterHealth reporter Carly Weeks talks about the low uptake of COVID-19 booster shots in Canada and why the government’s messaging needs to improve
Read more »
Dawn of the pet-friendly workplace: Why bosses should do more to accommodate pet ownersFirst hand: It\u0027s not just about inviting dogs to the office, but welcoming people with pets and even giving them benefits for vet bills
Read more »
NHL Playoff Push: Why Vegas is the team to watch right nowWith so many tight races for either a place in the post-season, or for seeding, keep a close eye on the regulation-wins column. RoryBoylen explains why in the latest look at the playoff push.
Read more »
Why it’s time to get clients to think beyond RRSPs when planning for retirementProviding holistic retirement planning that considers taxes, insurance, health care, housing and estate planning is an opportunity to reinforce the value of advice
Read more »