A-Z index

Dividend reinvestment plans (DRP)

Convertible notes
Describes what convertible notes are and outlines the capital gains tax consequences if these notes are converted into shares or units.
Dividend reinvestment plans
Some companies ask their shareholders whether they would like to participate in a dividend reinvestment plan. Under these plans, shareholders can choose to use their dividend to acquire additional shares in the company instead of receiving a cash payment. There are consequences of shareholders participating in dividend reinvestment plans to be considered.
Rights or options to acquire shares or units
A company or trust you own shares or units in may issue you rights or options to acquire additional shares or units at a specified price. The market value of these rights at the time the company or trust issues them to you may be non-assessable, non-exempt income. There are certain capital gains tax implications of rights or options to acquire additional shares or units.