The One City National Market
The Canadian market offers some excellent investment opportunities. Oh Canada one trading place, refers to the reality, one city, Toronto, runs, covers and controls the entire Canadian marketplace for stocks! Prior to the digital age the Canadian cities, Toronto, Montreal, Winnipeg, Calgary and Vancouver all had stock exchanges. Progress in communication and the digital age now sees Canadian stock or equity trading all centered and controlled from Toronto.
This post is Part 3 of the White Top View Series, Stock Markets, basic discussions of the American and Canadian stock markets. Links to all parts of the White Top View Series, Stock Markets are at the end of this post.
Calgarians and the denizens of Vancouver’s Howe Street may object and point out exchange operations stay in those cities. That is more a political bone and nod to the professional skill base that exists there. Toronto is the big dog that leads the pack.
Toronto Stock Exchange – TMX
For all practical purposes stocks in Canada trade in Toronto or at a least have trades centrally controlled by the Toronto based TMX Group Inc.
Formerly known as the Toronto Stock Exchange or TSE, the third largest exchange in North America, can trace roots back to 1852. Now called the TSX and under control of the TMX Group Inc. That company amalgamated all Canadian stock exchanges. They consolidated the Vancouver and Alberta Exchanges as the foundation for the TSX Venture Exchange.
Now the listings for almost all Canadian stocks divide into two groups. The senior or the larger established companies list on the TSX. Smaller or junior companies and startups find a home to list on the TSX Venture Exchange.
You have to wonder if the marketing people were out of the room when they named the exchanges. I guess it doesn’t matter, it works.
The mining car shown here and the oil rig following serve to illustrate the strong resource base of the Canadian market. Canada has grown to become the world leader in resource startups and financing.
Nowhere else has the unique combination of real numbers of people with professional knowledge, skill, experience and a generally willing base of investors. At least in favorable market conditions there are willing investors.
British Resources Financing Claim
There are still British Empire holdouts. During the historical British Empire, the course of events favored mighty Britannia. That established the center of the British Empire, London, as the world financial center.
London to this day continues to fund mining and petroleum plays. But things change. New York took over the financing leadership role and the Empire has long passed. Canada emerged as the resource play leader. Now, all but some players in London recognize Canada as the leader in resource startups.
While London continues to play a significant and important role, leadership is clear. Most, or at least more resource exploration ventures from around the world come to Canada to list and secure financing. Give our British friends a little understanding. Letting go is tough!
Resource Play Financing Mix
Only Australia has a comparable, if more modest base of knowledge, service and investors. As you may expect, resource ventures are also funded elsewhere around the world. However, as leaders emerge in any field. In this case, Canada leads.
The generalization stands but, as always, the world constantly changes. We are now witnessing Asian nations charging ahead with both growth, development and resource venture funding. Those growing numbers of resource plays promise very interesting times ahead!
Next White Top View blog post in this series we dig deeper to understand how Canada developed a unique market mix.
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Links to the White Top View Series, Stock Markets