AUS
NZ
UK
CA
USA
IND
.jpg)
Source: JomNicha, Shutterstock
When it comes to Canada, what do you think? Chilly weather, Toronto skyline and ice hockey? Well, the country is more than that, especially if you're looking to invest your hard-earned money by diversifying your portfolio and go global. To start with, the Canadian stock market comprises one large exchange, followed by other small stock exchanges.
The main exchange is the Toronto Stock Exchange (TSX), followed by TSX Venture Exchange (TSXV) and other exchanges like the Canadian Securities Exchange (CSE) and NEO Exchange.
The Canadian market offers some really good stocks and you may want to consider investing in some good pot stocks, bank stocks and penny stocks, among other things. But before you start investing, here's what you need to know about the various stock exchanges.
Toronto Stock Exchange (TSX)
Founded in 1861 and now owned by the TMX Group, the TSX is the largest exchange in Canada and the tenth largest in the world (as of January 2021). It has 1,676 listed companies and the market capitalization stands at US$ 3,545.7 billion (as of February 2021). Various companies from a wide range of industries such as finance, energy, industrials, marijuana, mining and oil and gas are listed on this exchange.
Source: Pixabay
Since the oil and gas sector is one of the largest sectors in Canada, you may find some good stocks to explore. Investors can explore the TSX for equities, bonds, real estate investment trusts and other products.
TSX Venture Exchange (TSXV)
Founded in 1999 and headquartered in Calgary, the TSX Venture Exchange was first known as the Canadian Venture Exchange, before the TMX group purchased it in 2001 and renamed it to its present name. You may find the stocks of emerging/small-cap companies here that go public to raise money.
As of February 2021, the stock exchange had 1,640 listed companies, out of which 413 companies were on the S&P/TSX Venture Composite Index. The exchange raised C$ 1.99 Billion equity capital with C$ 19.5 billion of shares being traded last month.
NEO Exchange (NEO)
Only six years old, the Neo Exchange is a new stock exchange in Toronto. It is backed by many domestic and international corporations like ITG Canada, Royal Bank of Canada and Barclays among other big names.
It started functioning on March 27, 2015, and on the first day, approximately 6.1 million securities were traded on NEO. As of February 2020, the stock exchange had 96 listings.
Canadian Securities Exchange (CSE)
After getting recognition as an exchange from the Ontario Securities Commission in 2004, the CSE is an alternative stock exchange for micro-cap and emerging companies. It has over 600 listed companies, primarily from Canada.
The CSE provides the following services to listed instruments such as risk management, market information and trade execution among other things.
As of December 2020, the CSE had a market cap of over C$36.5 billion.
