CRA indicates that a CCPC can generate active business income from its trading in securities

In confirming that the profitable trading of securities by a corporation, that constituted a trading business under the general criteria in IT-479R, would generally give rise to active business income, CRA stated:

In such a situation, the “principal purpose” of the trading business would generally not be to derive income from property and it would not be considered to be a “specified investment business.” As a result, the trading business may be considered an “active business” and any gains or losses from the trading business, as well as any interest or dividend income pertaining to or incident to that business, may be considered “income of the corporation for the year from an active business” under subsection 125(7) … [and] the corporation could be entitled to the small business deduction.

Neal Armstrong. Summary of 13 February 2020 External T.I. 2019-0826051E5 under s. 125(7) – specified investment business and s. 9 – capital gain v. profit - futures.