RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Today's TriviaFlow-through shares are essentially the company selling their expenses to investors. In addition to the shares, the investors get a tax deduction in the current year equal to the value of the flow-through shares they purchase. In exchange, the investor agrees to hold the shares for a minimum period (I believe that is 2 years).
From a tax perspective, if I buy $10k in flow-through shares and I'm in the top marginal tax bracket in Ontario (53.5%), I can save $5,350 in taxes when I next file. Offsetting that is the risk of holding a small cap stock for 2 years, and the fact the shares I purchase carry a $0 cost of investment. As such, when I sell the stocks in due course, I pay capital gains tax at half my marginal tax rate (26.75% in this example).
So if I invest $10k today, and if the stock price doesn't change at all in the next two years, then my cost is $10k up front, with a tax saving of $5,350 next year, and a tax hit of $2,750 in two years time. In a low inflation environment, the net cost is approximately $7,250. Note that the analysis varies based on your personal marginal tax rate.
https://www.ggfl.ca/flow-through-shares/