"Preferred Share" funding in Canada is more significant than in the United States due to:

Question

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Preferred shares in Canada are seen as a more attractive investment due to the way they are taxed. In Canada, dividends received from common shares are less tax-efficient compared to dividends received from preferred shares. This tax treatment encourages investors to choose preferred shares over common shares, leading to a higher demand for preferred shares in Canada compared to the United States.

"Preferred Share" Funding in Canada Is More Significant Than in the United