Page 223 - A Canuck's Guide to Financial Literacy 2020

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▪ Real Estate Partnership Units

Investors can invest in real estate which is a broad market. This can range from
buying a property to more complex such as Real Estate Limited Partnership
Units. (RLPU). Real Estate Partnership Units is typically when a group of
investors buy real estate for the purpose of generating a cash flow. and long-
term appreciation. Interested investors would participate in the project and be
rewarded if the project or investment is successful, either on the back-end or on
the disposition of the asset.
▪ Private Placements

Private placement is when a company raises money through a non-public
offering. They’re typically offered to a small number of investors which includes
friends, family, accredited investors and institutional investors. Private
placements are attractive to wealthy and knowledgeable investors as they
typically allow for the purchase of stock at discounted prices while offering
warrants to purchase additional stock in the future.

▪ Venture Capital

Venture capital is a form of private equity financing that is provided to early
stage, start up and emerging companies who are believed to have the potential
for growth.

▪ Commodities

Investors can invest in commodities through futures contracts or exchange
traded funds. Commodities include agricultural products such as corn, wheat,
soybeans, pork bellies, etc. Precious metals such as gold and silver are
commodities as well. Trading commodities involves taking a position whether
the price of a specific commodity will rise or fall. Be aware that trading
commodities is high risk and not for a novice investor.
▪ Flow Through Shares

Flow through shares provide a tax incentive to investors who acquire them.
Companies in the mining, oil and gas and renewable energy are allowed to
issue flow through shares to help finance their projects. These companies
typically struggle to raise capital to finance their exploration and development
activities which is why flow-through-shares are attractive.