NEX

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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.

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RELATED FAQS
  1. 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 Full Answer >>
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    If a company has been delisted, it is no longer trading on a major exchange, but the owners of the company shares are not ... Read Full Answer >>
  3. Why did my stock's ticker symbol change?

    W hen a ticker symbol changes it's usually not a good sign. Tickers of publicly traded companies generally only change for ... Read Full Answer >>
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    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
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