DEFINITION of 'Toronto Stock Exchange - TSX'

The Toronto Stock Exchange (TSX) is the largest stock exchange in Canada. It was established in 1852 and formally incorporated in 1878. The exchange is headquartered on Bay Street in Toronto; it is owned and operated by the TMX Group. TMX is owned by Maple Group Acquisition Corporation.

BREAKING DOWN 'Toronto Stock Exchange - TSX'

The Toronto Stock Exchange was known as the TSE until 2001, but is now referred to as the TSX; there was no change to the full name. The TMX Group was formally the TSX Group. Canadian exchanges have traditionally been home to a large number of natural resource and finance companies.

The TSX is the third-largest stock exchange in North America by capitalization, after the New York Stock Exchange (NYSE) and the Nasdaq. It's the largest exchange in the world by number of listed securities. TSX merged with the Montreal Stock Exchange (Bourse de Montreal) in 2009. Parent company TSX Group became TMX Group to reflect its ownership of both exchanges.

Electronic Trading of Many Instruments

Trades on the TSX are done entirely electronically, as the exchange eliminated its trading floor in 1997. This is analogous to the Nasdaq in the United States. Among traded instruments are shares in companies, investment trusts and exchange-traded funds. Other financial instruments such as bonds, commodities, futures, options and other derivative products are also actively traded. All transactions are denominated in the Canadian dollar.

Listed Companies

Over 1,500 companies are listed on the TSX. Among the largest are Suncor Energy (Canada's largest energy company), the Royal Bank of Canada (the largest bank in Canada and the 12th largest in the world) and the Canadian National Railway. More than 2,000 additional smaller companies are listed on the TSX Venture Exchange, known as the TSX-V.

The S and P/TSX Composite Index tracks the value of the 60 largest stocks on the TSX. Trading in these companies accounts for 70% of the total volume on the exchange.

TMX Ownership

A proposal to merge the TSX and the London Stock Exchange (LSE) in 2011 failed to receive the required two-thirds majority of votes from shareholders. Parent company TMX had proposed the merger to avoid being taken over by Maple Group Acquisition Corporation, a consortium of Canadian investors including the Canadian Plan Investment Board, Scotia Capital and TD Securities Inc. After the LSE merger plan failed, TMX agreed to the Maple Group takeover. TMX also owns Canada's largest clearinghouse for securities transactions, CDS, which handles 90% of Canadian trading.

RELATED TERMS
  1. TMX Group

    An exchange group that owns and operates several businesses involved ...
  2. TSX Venture Exchange

    Originally called the Canadian Venture Exchange (CDNX), this ...
  3. Conditional Listing Application ...

    An interim step in the listing process for a company that seeks ...
  4. Canada's New Stock Exchange - CNQ

    An alternative stock exchange for micro-cap and emerging companies ...
  5. Capital Pool Company (TSX Venture)

    A new, fledgling company trading on Canada's TSX Venture exchange ...
  6. Interlisted Stock

    A security that is listed on multiple stock exchanges. An interlisted ...
Related Articles
  1. Investing

    History Of The Toronto Stock Exchange

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

    Take Your Pennies To The TSX Venture

    The TSX Venture Exchange is a Canadian-based junior listings market that houses many micro-cap and small-cap firms.
  3. Investing

    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.
  4. Financial Advisor

    Is the TSX's Sell-off a Buying Opportunity?

    Contrarian investor waiting for a commodity bounce? Why not look north for some value plays?
  5. Financial Advisor

    Is Now the Right Time to Buy Canadian Stocks?

    Learn about the Canadian stock market and why it has declined over the past five years. Understand if now is a good time to invest in Canadian stocks.
  6. Insights

    The 3 Biggest Canadian Banks (RY, TD)

    Examine some of the largest banks in Canada, which also rank among the largest and most important banks in the industry worldwide.
  7. Investing

    The Top 3 ETFs For Investing in Canada

    Learn specific information about three of the most popular and best performing ETFs that offer exposure to Canadian equity markets for U.S. investors.
  8. Investing

    Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.
  9. Insights

    What's an Exchange?

    An exchange is an organized marketplace where securities and other financial instruments are traded.
  10. Investing

    3 Stocks to Bet on a Surge in Canada's Economy (RCI, RY)

    Find out which three Canadian stocks could stand to benefit from a surge in the country's economy. These stocks offer low share prices and high dividends.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. Do all international markets trade between 9:30am and 4pm local time?

    The New York Stock Exchange and Nasdaq both trade between 9:30am and 4pm Eastern Time. All major stock exchanges trade at ... Read Answer >>
  4. What are the most common market indicators to follow the Canadian stock market & ...

    Learn key indicators used by analysts to follow the Canadian stock market and to gauge the condition of the overall Canadian ... Read Answer >>
  5. Can stocks be traded on more than one exchange, such as, for example, on both the ...

    A stock can trade on any exchange on which it is listed. And to be listed it must meet all of the exchange's listing requirements ... Read Answer >>
Hot Definitions
  1. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  3. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  4. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  5. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  6. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
Trading Center