DEFINITION of 'Stock Savings Plan'

In Canada, a plan wherein certain provinces (such as Alberta, Ontario and Quebec) provide tax credits for provincial income taxes to residents who purchase certain investments, in particular the initial public offerings (IPOs) of local companies. Stock savings plans provide tax benefits to Canadian residents and are intended to encourage residents to invest in the provincial economy. Each Canadian province has its own unique stock savings plan.

BREAKING DOWN 'Stock Savings Plan'

The Quebec Stock Savings Plan, for example, is the plan for the Canadian province of Quebec. This particular plan provides tax benefits to Quebec residents who buy new issues of stock from local Quebec companies. In March 2012, stocks of Nemaska Lithium, an exploration and development company in Quebec's James Bay Region, were listed as "valid shares" and qualified for the province's stock savings plan.

RELATED TERMS
  1. Provincial Parental Insurance Plan ...

    A Canadian tax deduction relating to taxes that are paid or payable ...
  2. Alberta Securities Commission - ...

    The provincial regulatory agency that is responsible for administering ...
  3. Alberta Heritage Savings Trust ...

    A provincial fund established in the Canadian province of Alberta ...
  4. Resident Relative

    Spouses and relatives that an insured party shares a residence ...
  5. Principal Residence

    The main home that a person inhabits and uses for the majority ...
  6. Principal Private Residence (Canada)

    The home in which a Canadian taxpayer or family maintains its ...
Related Articles
  1. Investing

    Fundamentals Of How Canada Makes Its Money

    In terms of industry, Canada is best known for oil and gas production, but the second largest country in the world has quite the diversified economy.
  2. Investing

    Do Falling Oil Prices Hurt the Canadian Economy?

    As Oil Goes, So Goes Canada. Or Does It?
  3. Investing

    Canada: A New Frontier For Real Estate Investors

    This property market is easy to access and provides profitable opportunities.
  4. Trading

    Why U.S. Dollars Aren't Accepted in Canada

    Is the U.S. dollar accepted in Canada? Learn about the legal and practical aspects of using U.S. dollars in Canadian transactions.
  5. Retirement

    5 Reasons to Retire in Canada

    From proximity to the U.S. to affordable healthcare, there are at least 5 great reasons to consider moving to Canada for retirement.
  6. Investing

    The Top 8 Most Generous Canadian Provinces

    These provinces and territories rank high for generosity. Find out what sets them apart.
  7. Taxes

    Tax Rules for Resident and Nonresident Aliens

    This article examines the definition and tax treatment of these types of non-U.S. citizens.
  8. Insights

    Cross-Border Shopping: Bane Or Boon?

    Lower prices, better selection, lower sales tax rates and a strong Canadian dollar draw over 1.9 million Canadians over the border to shop every month.
  9. Taxes

    Canadian Grants And Tax Credits Fund Education

    RESPs and other grants help parents save for post-secondary education for their children.
  10. Retirement

    5 Developed Countries That Welcome Expats

    Investigate these expat havens if you seek a developed country with low barriers for getting a permanent resident visa – sometimes even citizenship.
RELATED FAQS
  1. Who is eligible for Canada Pension Plan benefits?

    Learn more about the Canada Pension Plan, who contributes to the plan and who can receive standard, disability, early retirement ... Read Answer >>
Hot Definitions
  1. Return On Equity - ROE

    The profitability returned in direct relation to shareholders' investments is called the return on equity.
  2. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  3. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  4. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  5. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  6. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
Trading Center