Canada Stock Market
We begin with a brief description about the Canadian stock market. The stock market consists of four categories. The TSX or the Toronto stock exchange is the biggest stock exchange in Canada among the four. It revolves around the trading of higher equities only. Besides being the biggest, the exchange is ranked eight in the world. The stock exchange of Canada was incorporated in the year 1861 after the merging of TSX and its rival the standard stock and mining exchange. The stock exchange became fully automated in the year 2001. Investor should be aware that TSX is the leader in oil and gas sector in Canada. Major mining stocks in Canada and Canada oil gas stocks are listed more on the Toronto stock exchange than any other stock exchange. TSX exchange was previously known as the Canadian venture exchange which is now defunct. The venture exchange was a merger between the ASE (Alberta stock exchange) and the Vancouver stock exchange.
The offices of TSX are spread throughout the country enabling it to provide service in Vancouver, Calgary, Toronto and many others including Winnipeg and Montréal. TSX group is considered to be the foundation stone of the Canadian financial market. Apart from TSX stock exchange, the TSX venture exchange caters to the public venture equity market. The TSX exchange has a list of 60 largest companies. This list is known as the S&P/TSX 60 indexes and is measured by the market capitalization. This TSX index also gives exposure to ten different economic sectors. The TSX Canada is dominated by companies dealing in energy and minerals. Some major Canadian mining industries are also listed on the stock exchange of Canada. The TSX stock exchange is considered to be the single biggest equity financing source for mining companies around the globe.
Opportunities with the Canadian Stock Exchange
The Canadian stock exchange not only lists the big companies but it also provides opportunities to companies that are either new or those who are trying to raise funds, to over come a financial crisis. They are known as the Canadian penny stock companies. A substitute exchange was created called the CNQ for companies who could not afford the high cost and capitalization criteria to enlist themselves in the normal exchange. It is a doorway for small cap companies in Canada to gain the confidence of the share market and its shareholders as it removes all the obstacles in trading securities. This type of shares usually trade below five dollars and can be bought through the Toronto stock exchange or the TSX venture exchange. The major company that specializes in penny shares in Canada is that of technology and commodities. This move by the TSX Canada has led it to become a more affordable market place to trade penny stock and other shares.
Canadian stock Exchange Summary and Benefits
Today, the stock exchange of Toronto is emerging as a leading place for investment in Canada and considered to be a major stock market in the world. The reason for the immense growth potential is due to the equity markets in Canada, which is considered to be active and this trend has been observed by many potential investors.
The stock market in Canada has many advantages attached to it. Firstly, the exchange offers a reasonably cost effective market for companies whose stocks are being issued. It also helps those companies that are not listed with the exchange. Such type of trading is called penny stock trading which investor can avail via OTC or pink sheet. Dealer participation is also welcome in the TSX Toronto due to the market model. The stock exchange is known for its transparency as it displays the trading transaction between the dealer and the client through an open book system.