Flow-Through Shares Definition

Flow-through shares are a financing vehicle used in the oil and gas and mining industries and are issued by companies that need cash but do not need tax deductions. Instead, the investors in these issues receive the tax deductions. The investors can use the deductions to offset against other income. Because investors receive tax deductions, the shares acquired are deemed to have a cost base of nil.
 

Flow-Through Shares Definition

Flow-through shares are a financing vehicle used in the oil and gas and mining industries and are issued by companies that need cash but do not need tax deductions. Instead, the investors in these issues receive the tax deductions. The investors can use the deductions to offset against other income. Because investors receive tax deductions, the shares acquired are deemed to have a cost base of nil.