Most casual investors don’t invest their ample time in thinking about Canadian stock market. They may focus on market fluctuations and own a few mutual funds. You should ask someone professionals on how to make the most of the trading market. Nevertheless of the investment level, it’s really a good idea to know about the Toronto Stock Exchange – the biggest stock market in Canada.
The TSX – Toronto Stock Exchange is one of the oldest and largest stock exchanges around North America. The main objective of the stock exchange is to serve as the central meeting place for those seeking to invest in their company and willing to provide such investment. The TSX is the principal stock exchange in Canada. Generally, the trading of securities like shares is greatly regulated at the provincial level.
The History of Toronto Stock Exchange –
The TSX – Toronto Stock Exchange was opened in 1861 with 18 stock listings and has famed for its innovative securities-trading technology. Earlier TSE was used as an acronym for the Toronto Stock Exchange. It was the first North American exchange that was replaced the fractional pricing with decimal pricing (1996).
The TSX was the first major exchanges to use the electronic trading in 1997 by ditching its trading floor a completely computerized system. However, the TSE became a part of publicly traded company – TSX Group Inc. in 2000. In the year 2002, the exchange got its abbreviation as TSX.
In fact, the TSX Group was acquired the derivatives market – Montreal Exchange Inc. (MX) and changed its name to the TMX Group. Both TMX and the London Stock Exchange had merged in 2011.
The Electronic Trading –
The trading activity on the TSX depends on different factors like the economy, industry or company developments and resulting investor confidence. Most researchers spend enough time to determine the influences in a precise way.
The TSX was eliminated the trading floor in 1997 and acquired the electronic trading – which is analogous to the Nasdaq in the United States. The electronic trading instruments include the shares in investment trusts, companies, and exchange traded funds.
Other financial instruments that are used for active trading on TSX include bonds, futures, commodities, options and other derivative products. The Canadian dollar is designated for all transactions.
The Listed Companies –
Over 1,500 companies are listed on the Toronto Stock Exchange. Among all the listed companies, the Suncor Energy – the largest energy company in Canada, the Royal Bank of Canada – the largest bank in Canada and the 12th largest around the world and the Canadian Railway are the largest ones.
In addition to, over 2000 smaller companies are enlisted on the TSX Venture Exchange – well-known as the TSX-V. The S&P/TSX Composite Index helps in tracking the value of the 60 largest stocks on the TSX. Moreover, the trading on these companies account for around 70% of the total volume on the exchange.
Bottom Line –
These are only the brief details about TSX. If you are concerned about learning to trade on TSX, you should join the Northern American leading investment education and training corporation.