Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Stock Savings Plan

What it is:

A stock savings plan is a Canadian taxation system that offers tax benefits to Canadian residents who purchase the initial public offerings (IPOs) of local companies.

How it works (Example):

Each Canadian province has its own stock savings plan. For example, Canada's Quebec province has the Quebec Stock Savings Plan, which provides tax credits to residents of Quebec who purchase new issues of stock from companies located in Quebec.

Why it Matters:

Stock savings plans are an effort by the Canadian government to stimulate regional economic growth. This is accomplished by offering tax incentives to those who provide capital funding to new companies by purchasing the IPOs of local companies.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...