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How to buy Aeva (AEVA) stock from Canada when it goes public
Here's everything we know so far about the Aeva IPO.
Not all Canadian-based trading platforms offer access to US stocks. But don’t worry — you still have options. We’ll walk through what you need to know about buying Aeva stocks from Canada.
Note: all dollar amounts on this page are in US dollars unless otherwise stated.
What we know about the Aeval IPO
Lidar technology developer, Aeva, is planning to go public through a merger with InterPrivate Acquisition Corp, a special purpose acquisition company (SPAC), also known as a blank check company. SPACs are companies with no commercial operations that exist purely to raise capital through IPOs. The deal is expected to close in the first quarter of 2021.
After the merger, the company will trade on the New York Stock Exchange (NYSE) under the ticker AEVA.
Will I be able to buy Aeva shares from Canada?
You won’t be able to buy Aeva Technologies shares on a Canadian stock exchange like the TSX or CSE, but you can from a Canadian-based brokerage that offers international access to companies listed on stock exchanges outside of Canada. Specifically, you’ll need a brokerage that provides access to the NYSE, the stock exchange on which AEVA stocks will be traded.
The process of buying stocks in a US company while living in Canada is the same as buying stocks in a Canadian company. You buy and sell using your online trading account or through an investment broker who handles US stocks.
How to buy shares in Aeva when it goes public
Once Aeva goes public, you’ll need a brokerage account to invest. Consider opening a brokerage account today so you’re ready as soon as the stock hits the market.
- Compare share trading platforms. If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Aeva. Find the stock by name or ticker symbol. Research its history to confirm it’s a solid investment against your financial goals.
- Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Aeva reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy a fractional share of Aeva, depending on your broker.
- Check in on your investment. Optimize your portfolio by tracking how your stock — and the business as a whole — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on company decisions that can affect your stock.
How do similar companies perform?
It’s impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like Aeva can be useful in determining how the market is performing and whether now is a good time to invest in this industry.
Here’s how similar companies have performed:
Luminar Technologies Inc. (NASDAQGS: LAZR)
Founded in 2012, US-based Luminar Technologies, Inc. operates as a vehicle sensor and software company for passenger vehicles and trucks. The company operates in two segments, Autonomy Solutions and Other Component Sales. The Autonomy Solutions segment designs, manufactures, and sells lidar sensors, and related perception and autonomy software solutions for original equipment manufacturers in the automobile, commercial vehicle, robo-taxi, and other related industries. The Other Component Sales segment engages in the designing, testing, and consulting of non-standard integrated circuits for government agencies and defense contractors.
In December, 2020, Luminar began trading on the NASDAQ with an initial share price of $23.65. Its stock hit a high of $41.80 on December 8, 2020. Its closing price on January 12, 2021, was $31.47.
Velodyne Lidar, Inc. (NASDAQGS: VLDR)
Velodyne Lidar, Inc. develops and produces lidar sensors for use in industrial, 3D mapping, drones, and auto applications in North America, the Asia Pacific, Europe, the Middle East, and Africa. The company offers surround-view hybrid solid state, directional solid state, and dome lidars; and Vella, an advanced driver assistance systems (ADAS) software solution built around lidar. Its products are used in various applications, including autonomous vehicles, ADAS, UAVs, mapping, industrial automation, self-driving rovers, autonomous vessels, smart city initiatives, and robotics. Velodyne Lidar, Inc. was founded in 2018 and is headquartered in San Jose, California.
In September 30, 2020, Velodyne began trading on the NASDAQ with an initial share price of $24.80. Its stock hit a high of $30.81 on December 20, 2020. Its closing price on January 12, 2021, was $23.26.
Compare trading platforms that provide access to Canadian and US stocks
Compare special offers, fees structures and a types of investments that are available with some of Canada’s top stock trading platforms.
Note: The dollar amounts in the tables below are in Canadian dollars.
Tax implications of buying US stocks in Canada
Agreements between Canada and the US require Canadians holding US stock investments to pay the US Internal Revenue Service (IRS) a 15% withholding tax on any dividends earned on their US stocks. Interest earned from bonds or other interest-yielding US investments are similarly taxed at a rate of 10%.
An exception is made for stock investments held in trust exclusively designed to provide retirement income. Such trusts include RRIFs, LIRAs, LIFs, LRIFs and Prescribed RRIFs. RRSPs are also exempt from US withholding tax if you own US investments in the form of US stocks, bonds or ETFs.
All income from investments, including foreign investments, must be declared as part of your income on your Canadian tax return. Unless your US earnings are exempt from withholding tax, this means you’ll be double taxed on those earnings — first by the IRS, then by the CRA.
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