StockGuru Canada

Canadian Markets

Canada has the ninth largest economy in the world. The stock markets of Canada contribute a lot in maintaining the economic stability of the country. There a number of stock markets which are operational in different cities around the country. All the trading of senior entities is solely done at the Toronto Stock Exchange while all the derivatives are shifted to the Montreal exchange. The trading of junior entities was done under CDNX( Canadian Venture Exchange), which is a merge of the Vancouver Stock Exchange and the Alberta Stock Exchange, and was the exchange for young, emerging companies.  The Toronto Stock Exchange acquired the CDNX in 2002 and renamed it the TSX-V for TSX-venture exchange.

The markets functioning in Canada are given below.

• Toronto Stock Exchange
• TSX Venture Exchange
• NEX Board
• Bourse de Montreal
• CNSX
• Nasdaq Canada
• CNQ

All these exchanges form the stock market of Canada. But the most important market in Canada is the Toronto Stock Exchange. Let us take a look at the some of the important stock markets of Canada.

Toronto Stock Exchange (TSX):

Toronto Stock Exchange is the largest stock exchange in Canada, third largest in North America and eight largest in the world. It is situated in Toronto, the largest city of Canada.   The Toronto stock exchange is the world’s leading exchange in the mining and oil and gas sector with the most number of companies registered than any other exchange in the world.

The foundation of the Toronto stock exchange was laid on October 25, 1861 by a group of twenty-four men. During the First World War, the exchange merged with its key competitor, The Standard Stock and Mining exchange. Computer based trading was introduced in 1977 and in 1997, TSX became North America’s second exchange to trade via a floorless, electronic environment.  And a recent merging with the London Stock Exchange has made Toronto stock exchange, the second largest in the world with a 48% greater market cap than NASDAQ.

Companies that list on the TSX are companies that are well-managed and growth-oriented.  The TSX is globally recognized as North America’s premier stock exchanges, know for its high standards and fairness.

Bourse de Montreal:

Bourse de Montreal exchange is a derivatives exchange located in Montreal, Canada. Its foundation was laid in 1872. All the trading of derivatives in Canada is done under the Montreal exchange. On December 10, 2007, TSX group announced the acquiring of Montreal exchange for CAD $1.31billion. The process of acquisition was completed in 2008.

Montreal Stock Exchange was the first stock exchange formed in Canada. The Montreal Exchange showed rapid progress reaching CAD $2.1 million by 1910 as compared to Toronto Stock Exchange which only amounted CAD $900,000. The exchange showed great progress but due to security concerns and other problems, it was given just the trading of derivatives while the trading of security entities was shifted to the Toronto Stock Exchange.

TSX Venture Exchange (TSX-V):

The TSX Venture exchange, formerly known as Canadian Venture Exchange was created in Canada on November 29, 1999. The CDNX was formed by merging Vancouver Stock Exchange and Alberta Stock Exchange. The focus of the CDNX was on the trading of junior entities. The headquarters of CDNX is in Calgary, Alberta while regional offices are in Vancouver, British Columbia, Montreal and Toronto. In 2001, TSX group purchased it and named it TSX Venture Exchange.

Companies that list on the TSX Venture Exchange are emerging companies that are seeking public venture capital to facilitate their growth.

NEX Board

The NEX Board provides a forum for trading companies that have fallen below TSX Venture’s listing standards because of low levels of business activity.

Canadian National Stock Exchange (CNSX)

The Canadian National Stock Exchange, CNSX, is a stock exchange low-cost alternative to traditional stock exchanges, but has an extremely high standard of disclosure.  The exchange uses leading edge technology to meet investor and dealer’s needs.  This model is an efficient new marketplace with transparency and liquidity for trading securities.

Nasdaq Canada

Nasdaq Canada is a subsidiary of Nasdaq to ensure Canadian investors immediate trading access of all Nasdaq securities.

The companies traded on the NASDAQ Canada Market represent a broad cross section of industries, including technology, consumer products, pharmaceuticals and multimedia.

CNQ

CNQ is an alternative stock exchange for micro-cap and emerging companies in Canada. Canada’s New Stock Exchange (CNQ) offers companies simplified reporting requirements and reduced barriers to entry, compared to the Toronto Stock Exchange and the TSX Venture Exchange.