Final answer:
The client best suited for flow-through investments is one with a high income seeking tax benefits who is also willing to tolerate high risk and has a long-term investment horizon.
Step-by-step explanation:
The client best suited to invest in new flow-through investments offered by an exempt market dealer (EMD) such as Rocky Mountain Investments Inc. would be one with a high income looking for tax incentives and willing to take on higher risk. Flow-through shares are a tax-efficient way for investors to fund resource exploration and development activities in sectors like mining, energy, and renewable energy. However, these investments are typically more suitable for sophisticated investors who can tolerate high risk, because the underlying resource enterprises tend to be more speculative in nature.
Clients considering flow-through investments should also have a long-term investment horizon and not need immediate liquidity, as these shares may not be easy to sell quickly. Additionally, these investors must be comfortable with the implication that their capital could be entirely at risk if the resource enterprises do not succeed.