NEX

DEFINITION of 'NEX'

A separate board on the TSX Venture exchange, which provides a unique trading forum for listed companies that no longer meet the TSX Venture's ongoing listing standards. The NEX is designed for companies that have low levels of business activity or have ceased to carry on active business. It benefits such companies by giving their stocks a degree of liquidity and providing visibility that may attract potential acquirers or investors. These companies are identified by an "H" or "K" extension to their trading symbols.

BREAKING DOWN 'NEX'

Prior to the launch of NEX by the TSX Group, companies that could not meet the TSX Venture's continuous listing criteria were designated as "inactive" and given 18 months to either meet the listing standards or be delisted. The introduction of NEX relieves such companies of the tremendous pressure of a delisting deadline, and gives their management and shareholders another opportunity to turn things around.


Note that NEX companies must continue to meet the same disclosure standards applicable to all Canadian public companies, and must also maintain good standing with the relevant Canadian securities commissions.

RELATED TERMS
  1. Conditional Listing Application ...

    An interim step in the listing process for a company that seeks ...
  2. Advanced Company (TSX Venture)

    An issuer listed on Canada's TSX Venture exchange that has significant ...
  3. TMX Group

    An exchange group that owns and operates several businesses involved ...
  4. Multi Index Option

    A type of investment in which the payoff depends on the difference ...
  5. Listed Security

    A financial instrument that is traded through an exchange, such ...
  6. S&P/TSX Composite Index

    The Canadian equivalent to the S&P 500 market index in the ...
Related Articles
  1. Investing Basics

    How To Invest In Toronto Stock Exchange Equities

    Although only 1/10th the size of the U.S. equity market, Canada has a number of world-leading companies in the financials, energy and materials sectors.
  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. 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...
  4. 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...
  5. Investing

    5 High-Yielding Exporters To Own Now

    You wouldn't think this was an opportunity. In the last three months, only the Euro dropped further than the Canadian dollar. Canada's currency recently hit a five-and-a-half year low. And because ...
  6. Entrepreneurship

    Does Your Startup Need Venture Capital Money?

    Venture capital funding provides capital to grow a business. However, entrepreneurs will also lose some control over business decisions.
  7. 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.
  8. Entrepreneurship

    A Look Into The Secrets Of Venture Capitalism

    Venture capitalists own an equity stake in the start-up and have a say in the functioning of the company. Investments are generally made in early stages of a company with long term high growth ...
  9. Professionals

    What does Joint Venture Mean?

    In a typical joint venture, two or more businesses agree to contribute capital and resources for a common project. Most often, that project produces something that earns revenue.
  10. 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).
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. How does investing in the banking sector differ between the U.S. and Canada?

    Discover why some investors prefer Canadian to U.S. banks. Learn how trades of Canadian bank shares are executed in both ... Read Answer >>
  3. 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 >>
  4. What are the primary advantages of forming a joint venture?

    Learn how the advantages of entering into a joint venture make the business strategy an alternative to mergers and acquisitions ... Read Answer >>
  5. What are the rules behind the delisting of a stock?

    The criteria to remain listed on an exchange differs from one exchange to another. On the New York Stock Exchange (NYSE), ... Read Answer >>
  6. How does a company switch from one stock exchange to another?

    A publicly traded company can, in fact, switch to a stock exchange that it believes will be favorable to its financing efforts. ... 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