The majority of unfussy investors don’t invest much time thinking regarding Canada’s stock market. They might know about market fluctuations, and have a few mutual funds under their belt, but ask someone what 2 sectors make up most of the market, and you will probably receive a blank gaze.
Regardless of your level of investment, it isn’t a bad concept to know a few things regarding the Toronto Stock Exchange. So here is a list of things you probably don’t know regarding Canadian stock market.
There’re so many companies to pick from in Canada:
Canada has 2 primary exchanges: the TSX (Toronto Stock Exchange) and the TSXV (TSX Venture Exchange). The Toronto Stock Exchange is destined for firms with over $7.5 million in physical assets; whereas the TSXV is for firms with less than that.
In total, there’re 3,985 firms indexed on the exchanges, 1,561 on the Toronto Stock Exchange & 2,424 on the TSXV. It is the Toronto Stock Exchange where you can find Canada’s most renowned firms, such as Suncor Energy and Research in Motion. The TSX Venture Exchange has smaller, generally unknown businesses.
The majority of Canadian stock market is focused in 2 sectors:
The Canadian stock market is greatly weighted to just 2 sectors: financials & energy. The whole market capitalization of the TSX is nearly $2.12 billion. Of that total, 22% is in financials, 23% in mining and 18% in gas and oil. If you’re looking for exposure in other business sectors, such as health care or technology, you should think about investing elsewhere, such as in the U.S. market.
The TSX has more than stocks:
It isn’t just companies on the Toronto Stock Exchange – at the end of the previous year, 174 ETFs were indexed as well. Exchange Trade Funds trade precisely like companies do – they are fundamentally stocks that track an index – which is why there are index on the Toronto Stock Exchange.
The Toronto Stock Exchange has a 150-year history:
The Toronto Stock Exchange was formed in October 1861. There were mere eighteen stocks indexed on the exchange, predominantly real estate companies and banks. As per Investopedia.com, during that period there was solitary daily thirty-minute trading session, throughout which only a small number of transaction would happen.
There’re other exchanges in Canada as well:
The TMX Group also operates several other exchanges, including the Montreal Exchange, which was in fact the 1st Canadian exchange. Also, it owns the NEX, which is a place where investors can purchase & sell companies that are too small to index on the TSX Venture Exchange.
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