What is 'TSX Venture Exchange'

TSX Venture Exchange is a stock exchange in Calgary, Alberta, Canada that was originally called the Canadian Venture Exchange (CDNX). It resulted from a merger between the Vancouver and Alberta stock exchanges. TSX Venture Exchange also has offices in Toronto, Vancouver and Montreal.

BREAKING DOWN 'TSX Venture Exchange'

The goal of the TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. This exchange mostly contains small-cap Canadian stocks. It is owned and operated by the TMX Group.

There are over 1,600 companies listed on the TSX Venture Exchange with nearly 400 included in the S&P/TSX Venture Composite Index. Companies listed in the composite index are primarily mining (53%) and traditional energy (15%) companies, while the majority of them are located in British Columbia, Alberta and Ontario, where these industries have prominent operations.

The most popular stocks on the TSX Venture Exchange are grouped into an index known as the TSX Venture 50, a group of strong performers from clean energy, diversified industries, mining, oil/gas, and life science sectors. Companies are selected for this index based on several criteria, including a market capitalization of greater than C$5 million, closing share price of greater than C$0.25, listing for more than one year, and a share price of at least C$0.10 the year before.

There are two main avenues for American investors to invest in TSX Venture Exchange listed companies:

  1. U.S. investors can purchase stocks traded on the TSX-V directly using brokerage accounts that support trading on foreign stock exchanges. This includes many  online brokers in the U.S..
  2. Many TSX-V companies are dual-listed in the U.S. as American Depository Receipts, making it possible for U.S. investors to purchase them on U.S. exchanges. But, investors should be aware that these ADRs may be less liquid than their TSX-V counterparts.

History of TSX Venture Exchange

The Canadian Venture Exchange started on November 29, 1999, as a result of an agreement among the Vancouver, Alberta, Toronto and Montreal exchanges to restructure the Canadian capital markets along the lines of market specialization.

The focus of the CDNX was smaller companies, whose assets, business and market capitalization were too small to be listed on the Toronto Stock Exchange. A large number of the companies on the exchange were resource exploration companies, but new high technology ventures were also listed. The exchange had its corporate headquarters in Calgary, Alberta, and its operations headquarters in Vancouver, British Columbia, with additional offices in Toronto and Montreal. The Winnipeg Stock Exchange and the small-cap portion of the equities market of the Bourse de Montréal (MSE) were also later merged into the CDNX.

RELATED TERMS
  1. Toronto Stock Exchange (TSX)

    The Toronto Stock Exchange (TSX) is the largest stock exchange ...
  2. Vancouver Stock Exchange (VAN) ...

    A defunct stock exchange formerly located in Vancouver, British ...
  3. NEX

    A separate board on the TSX Venture exchange, which provides ...
  4. Venture Capital Funds

    Venture capital funds invest in early-stage companies and help ...
  5. Advanced Company (TSX Venture)

    An advanced company is an issuer on Canada's TSX Venture exchange ...
  6. Venture Capitalist

    A venture capitalist is an investor who provides capital to startup ...
Related Articles
  1. 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.
  2. Investing

    History Of The Toronto Stock Exchange

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

    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.
  4. Investing

    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.
  5. Financial Advisor

    Being a venture capitalist: A how-to guide

    So you want to be a venture capitalist? Learn what it takes, find out what you need to know, where to start, and what kind of life you will need to take in the world of venture capitalism.
  6. 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.
  7. Small Business

    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.
  8. Investing

    Toronto Stock Exchange: Safest Investment In The World?

    Canada, one of the wealthiest countries, is also one of the safest places to invest.
RELATED FAQS
  1. 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 >>
  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. What is the difference between the equity method and the proportional consolidation ...

    Discover the differences between the equity method and the proportional consolidation method of joint venture accounting, ... Read Answer >>
Hot Definitions
  1. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  2. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  3. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  4. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  5. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
  6. Monte Carlo Simulation

    Monte Carlo simulations are used to model the probability of different outcomes in a process that cannot easily be predicted ...
Trading Center