And when you do sell an equity investment for a profit, only three quarters of your gain is taxed. Other tax rules may apply to capital gains. For example, any gains on your principal residence are exempt from tax, but gains on income-producing real estate can be subject to a maze of provisions. Dividends from Canadian corporations are also subject to favourable tax treatment. The exact impact of the Dividend Tax Credit depends on your income from other sources, but in general, qualifying dividends get a slightly better tax break than capital gains.
Blue chip refer to the shares of the largest, most stable companies in the country.
These stocks tend to be conservative investments that generate steadier returns than most stocks. For the most part, stocks, bonds, and mutual funds must be purchased and sold through licensed brokers who have completed the Canadian Securities Course. All brokers charge fees for conducting your transactions, but they can vary considerably depending on the size of the trade as well as the type of broker. They can help you build a properly diversified portfolio and select the most appropriate assets for that portfolio. Discount brokers are generally who you will deal with to buy stocks on the Internet.