Split Share Corporations – Preferred Shares

Split Share Corporations – Preferred Shares:  Preferred shares of split share corporations are typically held by investors seeking income. The cash flow from the securities held in the portfolio, services the split share corporations’ preferred share requirements.  The coupon on the preferred shares is typically fixed, but some float with an administered rate such as the prime rate established by a Canadian bank. Preferred shares of split share corporations may also be referred to as Equity Dividend Shares or Preferred Securities.