NEX

AAA

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.

INVESTOPEDIA EXPLAINS '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. Relisted

    The return to listed status for a stock after having been delisted ...
  2. Cross-Listing

    The listing of a company's common shares on a different exchange ...
  3. Toronto Stock Exchange - TSX

    The largest stock exchange in Canada. The Toronto Stock Exchange ...
  4. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  5. Listing Requirements

    Various standards that are established by stock exchanges (such ...
  6. Delisting

    The removal of a listed security from the exchange on which it ...
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 >>
  2. If a stock is delisted, do shareholders still own the stock?

    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 >>
  4. Will technology ever disrupt the role of the custodian bank?

    Custodian banks, along with other financial institutions that hold custodian accounts, are likely to be disrupted but not ... Read Full Answer >>
  5. What is the average range for the price-to-earnings ratio in the electronics sector?

    Investors purchase shares of company stock and other traded securities through capital markets in either primary or secondary ... Read Full Answer >>
  6. What are the benefits and shortfalls of the Herfindahl-Hirschman Index?

    Equity and debt are the two sources of financing accessible in capital markets. The term "capital structure" refers to the ... Read Full Answer >>
Related Articles
  1. Investing Basics

    The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.
  2. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  3. Investing Basics

    Digging For Profitable Delistings

    Deregistration can provide opportunities for savvy investors. We'll show you how to cash in.
  4. Bonds & Fixed Income

    History Of The Toronto Stock Exchange

    Find out how the third-largest stock exchange in North America came to be.
  5. Investing

    Too Late To Invest In EM?

    Investors have flocked to developing markets amid continued low U.S. interest rates & hopes of further economic stimulus from emerging world central banks.
  6. Investing

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
  7. Investing

    How The NYSE Makes Money

    We examine how the New York Stock Exchange, the leading US stock exchange, makes money.
  8. Investing Basics

    What is a Financial Market?

    “Financial market” is a broad term used to describe any forum where buyers and sellers meet to trade assets.
  9. Investing Basics

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  10. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

    A look at two quality ETFs that offer diversification, low expense ratios, and exposure to the total market.

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center