DEFINITION of 'Vancouver Stock Exchange (VAN) .V'

The Vancouver Stock Exchange (VAN) .V - (VSE) is a defunct stock exchange formerly located in Vancouver, British Columbia. It was incorporated in 1903 as the third largest marketplace in Canada behind the Toronto Stock Exchange and Montreal Stock Exchange. The exchange originally featured small capitalization, mining, oil and gas exploration stocks. By the early 1990s, however, the Vancouver exchange grew into a specialty market for venture capital securities. Today, the Vancouver Stock Exchange falls under the Toronto Stock Exchange (TSX) umbrella after a merger with the Canadian Venture Exchange in 1999.

BREAKING DOWN 'Vancouver Stock Exchange (VAN) .V'

The Vancouver Stock Exchange was recognized as the home for venture capital solutions but many saw through the facade and quickly labeled it the "scam capital of the world." At one point the VSE listed about 2,300 stocks, many of which were considered total failures or frauds. The exchange provides a textbook example of how errors in floating point calculations can lead to enormous discrepancies in the correctness of the index reading. Ultimately, the VSE is an example of one of the world's least successful stock exchanges.

Still, the Vancouver Stock Exchange managed to exist throughout all the turmoil and in 1999, it merged with the Alberta Stock Exchange and Bourse de Montreal to become the Canadian Venture Exchange, now known as the TSX Venture Exchange. The trading floor of the Vancouver exchange remained the center of the new division. But that only lasted for two years. In 2001, TMX Group – the parent company of the Toronto Stock Exchange – purchased the newly formed marketplace and quickly renamed it. Today, the Toronto Venture Exchange is headquartered in Calgary, Alberta, with offices in other major cities throughout Canada. All trading is executed electronically so a trading floor no longer exists.

The TSX Venture Exchange at a Glance

Today, the Toronto Venture Exchange is considered a leader in global benchmarks and venture capital listings despite its previous reputation. The strength of the Toronto Stock Exchange and Venture Exchange now stretches to about $2.3 trillion in market capitalization. The venture division alone offers solutions to 1,791 companies with a total market cap of about $23 billion. Trading on the exchange is as simple as any other major exchange. There are different order types, rules, regulations and services that keep the exchange operating smoothly. Some of those orders include traditional limit and market orders to more unfamiliar dark order types. Companies listed on the exchange are subject to various fees like initial application, registration and monthly costs.

RELATED TERMS
  1. TSX Venture Exchange

    TSX Venture Exchange is a stock exchange in Canada that was originally ...
  2. Exchange

    An exchange is a marketplace in which securities, commodities, ...
  3. Toronto Stock Exchange (TSX)

    The Toronto Stock Exchange (TSX) is the largest stock exchange ...
  4. Regional Stock Exchange

    A regional stock exchange is a place outside of a country's primary ...
  5. Interlisted Stock

    A security that is listed on multiple stock exchanges. An interlisted ...
  6. Equity Market

    An equity market is a market in which shares are issued and traded, ...
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

    Stock Exchanges Around The World

    We tell you about five of the most popular stock exchanges from around the globe.
  3. Insights

    The Birth of Stock Exchanges

    Learn about the evolution of stock exchanges, from the Venetian states to the British coffeehouses, and finally to the NYSE.
  4. Trading

    Top Companies Trading On The Toronto Stock Exchange

    Canadian stock markets are home to some of the best companies across sectors such as finance, energy, mining and minerals.
  5. Investing

    Toronto Stock Exchange: Safest Investment In The World?

    Canada, one of the wealthiest countries, is also one of the safest places to invest.
  6. Trading

    The Death Of The Trading Floor

    Electronic trading has almost completely replaced face-to-face human trading.
  7. Trading

    Dual And Multiple Exchange Rates 101

    Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work.
RELATED FAQS
  1. What are all of the securities markets in the U.S.A?

    Learn about the major and somewhat lesser-known U.S. financial securities markets. Read Answer >>
  2. Can stocks be traded on more than one exchange?

    A stock can trade on any exchange on which it is listed. A company can list its shares on more than one exchange, in a dual ... Read Answer >>
  3. Why are traders on the floor of the exchange?

    Learn how trading on the floor of the stock exchange has evolved over time with computers now managing the majority of buying, ... Read Answer >>
  4. What are the rules behind the delisting of a stock?

    Find out the criteria for a company to remain listed on a stock exchange. Learn what actions would lead to a security being ... Read Answer >>
Hot Definitions
  1. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  2. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  3. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  4. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  5. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  6. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
Trading Center