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Unformatted text preview: y. if no single class of shares qualifies, the principal class of shares is any combination of shares that qualify.
article xxix a(5)(f ) defines “recognized stock exchanges” to mean the NasDaq, any exchange registered as a national securities exchange with the securities and Exchange Commission, or any Canadian stock exchange that is one of the “prescribed stock exchanges” or “designated stock exchanges” under the act.
The technical explanation states that subject to the adoption by Canada of other definitions, Canada accepts the us interpretation of the terms “primarily traded” and “regularly traded,” with modifications as circumstances require for the purposes of article xxix a(2)(c). in the case of the united states, the technical explanation indicates that “primarily” has the meaning assigned to it under Treas. reg. section 1.884-5(d)(3).22 accordingly, stock of a corporation is primarily traded if the number of shares in the company’s principal class of shares that are traded during the taxable year on all recognized stock exchanges in the con...
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