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Stock Exchange

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Canada

Canadian Stock Exchanges






Multinational corporations tend to list on stock exchanges in more than one country. This decision increases their stock liquidity and reduces risks of losses caused by unstable currencies and markets.

Canada is politically and economically stable. The country’s resource-rich economy provides the exchanges with one of the highest levels of stability and strength. Canadian financial system is one of the strongest in the world, inflation rates aree kept under control.

Canadian stock exchanges maximize visibility and liquidity, fosters entrepreneurial spirit, while also offering better protection to investors. Another benefit for companies is the fact that the timeline for going public in Canada is shorter and cheaper than those in other countries.

TSX

Toronto Stock Exchange (TSX)






Toronto Stock Exchange (TSX) is the largest stock exchange in Canada and one of the largest in North America. It goes after the New York Stock Exchange (NYSE) and the Nasdaq by capitalization. It's the largest exchange in the world by the number of listed securities.

Toronto Stock Exchange opened in 1861 with 18 stock listings and has since become an innovator in securities-trading technology. It was one of the first major exchanges to adopt electronic trading, abandoning its trading floor for a fully computerized system.

The Toronto exchange is one of the few that covers all factors of the mining industry, therefore, small to medium-sized companies in technology and health care enjoy greater visibility in the Canadian stock exchanges. Greater market attention leads small and medium-sized companies to greater investment demand.

Costs of going public and maintaining on TSX are less than the U.S. stock exchanges. There are also fewer restrictions than on the U.S. markets.

Lower volatility and regulations coupled with greater flexibility and transparency provide the fact that 40% of the trading on TSX are from outside of Canada.

CSE

Canadian Securities Exchange (CSE)






The CSE is the primary competitor of the Toronto Stock Exchange as a technology-focused Canadian exchange. The Canadian Securities Exchange, unlike the TSX, offers simplified reporting requirements and this way reduces the barriers to listing.

The Canadian Securities Exchange (CSE) began operations in 2003 to provide a modern and efficient alternative for micro-cap and emerging companies looking to access the Canadian public capital markets. It was recognized and approved by the Ontario Securities Commission as a stock exchange in 2004.

The CSE operates all electronically and does not have a traditional trad-ing floor. The trading system is fully automated and is based on price-time priority. Securities are traded in Canadian dollars. The companies are listed on the CSE must have a minimum market cap of $5 million. According to the exchange, there were about 580 companies listed on the exchange in the beginning of 2020.



As CSE’s management mentioned their objective is to provide the low-est cost of Canadian public capital for entrepreneurs by providing effi-cient and cost-effective primary listing services and liquid and accessible secondary market trading services for all Canadian issuers.



The CSE attempts to remove the duplication of regulation between the exchange and the provincial securities commissions. The purpose behind the exchange is to strengthen investor confidence in emerging compa-nies through enhanced disclosure and high regulatory oversight stand-ards.