Founded in 1852 and owned and operated as a subsidiary of the TMX Group, the TSX (Toronto Stock Exchange) is the most important stock exchange in Canada. Until 2001, the TSX was known as the TSE.
History of TSX:
Canadian exchanges have customarily been home to the securities of several natural resource & finance firms. The Toronto Stock Exchange is the 3rd largest stock exchange in North America in terms of capitalization, after the NYSE (New York Stock Exchange) and the Nasdaq. Also, TSX is the largest exchange in the globe by the number of listed securities. In 2009, Toronto Stock Exchange merged with the Montreal Stock Exchange. To imitate ownership of both exchanges, the parent company, TSX Group, became TMX Group.
What are the listed companies on the TSX?
More than 1,500 companies are indexed on the Toronto Stock Exchange. Among the largest are the Canadian National Railway, Suncor Energy (Canada’s largest energy company), and the Royal Bank of Canada (the largest bank in Canada and the 12th largest in the world). Over 2,000 smaller firms are indexed on the TSXV.
The Toronto Stock Exchange possesses a 15-year history:
The Toronto Stock Exchange was created by 24 men in 1861. There were merely eighteen stocks indexed on the exchange, predominantly real estate firms and banks. As per Investopedia.com, at that time there was one daily thirty minute trading sessions, during which only a small number of transactions would happen.
Initially it cost just $5 for firms to get listed on the TSX, but that amplified to $250 after one decade. By 1901 there were 100 companies in the Toronto Stock Exchange and in 1913 it shifted to its own building. By 1936 the Toronto Stock Exchange was North America’s 3rd largest exchange.
Why Invest in Toronto Stock Exchange Stocks:
Canadian stocks jointly had a worth of $2.34 trillion accounting for nearly 3.6 percent of international market capitalization. Though only 1/10th of the size of the U.S. equity market, Canada has several world-leading firms bunched in 3 important sectors – materials, energy and finance. The majority of these firms have robust balance sheets, superb management, and great records of growth & profitability.
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