Capital Pool Company (TSX Venture)

DEFINITION of 'Capital Pool Company (TSX Venture)'

A new, fledgling company trading on Canada's TSX Venture exchange that has no commercial operations and no assets except for cash. A capital pool company (CPC) uses its cash holdings to evaluate promising businesses or assets that it would acquire in a qualifying transaction, which it has to complete within 24 months of listing. Companies trading as a CPC have a "P" after their ticker symbol. The completion of the qualifying transaction would enable the CPC to list as a standard Tier 1 or Tier 2 issuer on the TSX Venture exchange.

BREAKING DOWN 'Capital Pool Company (TSX Venture)'

A CPC that cannot complete its qualifying transaction within the prescribed time limit of 24 months of listing may be at risk of a trading suspension or delisting from the TSX Venture exchange. A CPC trading on the TSX Venture exchange can be identified by the ".P" added to its trading symbol.


The TSX Venture exchange's CPC program is a unique offering that connects individuals who have financing and directorial experience with entrepreneurs whose early-stage companies need capital and management expertise.

RELATED TERMS
  1. Advanced Company (TSX Venture)

    An issuer listed on Canada's TSX Venture exchange that has significant ...
  2. Toronto Stock Exchange - TSX

    The largest stock exchange in Canada. The Toronto Stock Exchange ...
  3. NEX

    A separate board on the TSX Venture exchange, which provides ...
  4. Conditional Listing Application ...

    An interim step in the listing process for a company that seeks ...
  5. TMX Group

    An exchange group that owns and operates several businesses involved ...
  6. Venture Capitalist

    An investor who either provides capital to startup ventures or ...
Related Articles
  1. Investing Basics

    Toronto Stock Exchange: Safest Investment In The World?

    Canada, one of the wealthiest countries, is also one of the safest places to invest.
  2. Stock Analysis

    The Top 4 Stocks Listed on the Toronto Stock Exchange for 2016 (T.TO, IPL.TO)

    Understand what's happening with the Toronto Stock Exchange in 2016. Learn about four of the top stocks on the Toronto Stock Exchange for the coming year.
  3. Personal Finance

    Seek An Adventure In Venture Capital

    Make a career out of chasing down the "next big thing".
  4. Entrepreneurship

    How Social Venture Capital Is Changing the World

    Learn what social venture capital is and the ways in which it differs from traditional venture capital. Identify two leading social venture capital firms.
  5. Investing

    Strenghten Your Portfolio With These High-Yield Canadian Stocks

    <p>Utilities have been one of the top-performing sectors this year, outdistancing the S&amp;P 500 with total returns of better than 13% vers...
  6. Investing

    Strenghten Your Portfolio With These Canadian High-Yield Utility Stocks

    <p>Utilities have been one of the top-performing sectors this year, outdistancing the S&amp;P 500 with total returns of better than 13% vers...
  7. Investing

    A Look into the Exciting World of Venture Capital

    We look into the world of venture capital, where deep-pocketed investors gamble on funding the next big startup (or the next big flop).
  8. Entrepreneurship

    A How-To Guide to Being a Venture Capitalist

    So, you want to be a venture capitalist? Here's what it takes (besides capital).
  9. Investing

    Who are Venture Capitalists?

    Venture capital investment firms can provide the seed money for high-risk, start-up companies. People called venture capitalists run these firms, and make the investment decisions.
  10. Investing Basics

    Penny Stocks Vs. Venture Capital: Which Carries the Highest Risk?

    Learn how the challenges of venture capital investing and buying penny stocks differ and which type of investment carries the most risk.
RELATED FAQS
  1. How do you compare the Dow Jones Industrial Average (DJIA) and the Toronto Stock ...

    See how the Dow Jones Industrial Average and TSX Composite move according to factors in their respective countries and from ... Read Answer >>
  2. Where does venture capital come from?

    Obtaining funding from venture capitalists is the way to go for those who have great ideas with potential for becoming lucrative ... Read Answer >>
  3. How is venture capital regulated by the government?

    Learn about some of the ways in which the U.S. government and the Securities and Exchange Commission regulate venture capital. Read Answer >>
  4. How is venture capital different from other kinds of equity financing?

    Learn how venture capital equity financing differs from other funding options and what companies need to be aware of prior ... Read Answer >>
  5. Which industries can benefit the most from venture capital?

    Read about the kinds of industries that tend to receive the most venture capital funding and why private equity investors ... Read Answer >>
  6. What are some of the disadvantages to taking venture capital?

    Learn how financing a business through venture capital can be a viable source of funding for small businesses but know caveats ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center