John Heinzl’s Investor Clinic in the Globe is titled Ups and Downs of Doing the Splits and addresses the question: What are split shares exactly, and are they a good investment?
He starts of really well:
Because split shares can get a bit tricky, we’ve invited one of Canada’s leading preferred share experts, James Hymas of Hymas Investment Management in Toronto, to share his expertise.
Dear Sirs: Please extend my Globe & Mail subscription …
Most of it’s pretty basic. My favourite part was when I was asked ‘Who buys Capital Units?’:
For those reasons, Mr. Hymas says the capital shares are only appropriate for “suckers.”“They’re for people who like to pay high fees, and they’re for people who like to take a lot of risk, and they’re for people who can’t read a prospectus properly,” he says.
[…] Readers will remember that I was quoted in a recent article by John Heinzl expressing a strong opinion on the Capital Units issues by SplitShare corporations: For those […]
[…] John Heinzle has written an article with the captioned title that follows up his earlier piece titled Ups and downs of doing the splits. […]