RE:RE:RE:RE:RE:RE:RE:KNTNF appears to be cheapof course it adds liquidity --but only for other daytraders buying and selling small amounts of shares-- it does NOT add liquidity with respect to institutional buyers or mutual which buy big blocks of shares.The 'liquidity' arguement is a a bit of an illusion.
The fact that your wife profited from flipping in and out was good while it lasted. Hopefully CRA does not sees this a as a 'Business" underatking and assess gains as income vs. capital gains.
This is the risk all day traders face - if you make a small amount the risk is low -- but if you make significnat gains --its a red flag for CRA and can result in an audit that covers 3 years of trading.
CRA can monitor every trade you make and the frequency. Sooner or later they will undertake aproject to crack down on day traders i.e., while the amounts are small iindividually if CRA audit enough people the take will be significant. Day trading is in fact an abuse of the tax rules and benefits regarding investment
You are wrong if you really think day trading is investinmg because it may "involve predicting what will happen to the share price in a given day, or in a short time frame" - being kind -- its gambling or taking advantage of tax laws that were not mean to promote 'gambling'.