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Understanding the Canadian Capital Markets
Toronto Stock Exchange (TSX) and TSX Venture Exchange have provided access to equity capital to issuers for over 150 years, and currently count more than 3,800 issuers as customers.
TSX is the senior equity market, connecting investors and issuers from all over the world.
| Year to date statistics | 2008 YTD November 30 | Change over 2007 YTD November 30 |
|---|---|---|
| New issuers listed | 116 | -37 % |
| Number of IPOs | 52 | -37 % |
| IPO financings raised | $1.93 billion | -63 % |
| Total financings raised | $24.8 billion | -43 % |
| Market cap listed issues | $1,294 billion | -37 % |
TSX Venture Exchange is the public venture capital market, providing access to public equity capital to emerging companies.
| Year to date statistics | 2008 YTD November 30 | Change over 2007 YTD November 30 |
|---|---|---|
| New issuers listed | 222 | -12 % |
| New equity financing | $5.4 billion | -45 % |
| Market cap listed issues | $16.3 billion | -71 % |
Toronto Stock Exchange and TSX Venture Exchange are successful because of the peer group of their issuers, a deep and liquid trading and investing environment, and the expertise and innovation exhibited by their stakeholders.
1. Peer Group
Toronto Stock Exchange and TSX Venture Exchange are home to the largest number of publicly traded companies of any exchange in North America, and have 8% of all listed companies worldwide.
Number of Companies by Sector - at November 30, 2008
2. Trading and Investing
Toronto Stock Exchange and TSX Venture exchange are attractive markets for issuers because of the liquid and well-regulated secondary market they provide. TSX Group operates a fully-electronic, centralized auction market. The goal of the trading marketplace is to provide a fair and transparent price discovery mechanism, and at the same time allow for the economical execution of both large and small orders.
| Year to date statistics | 2008 YTD November 30 | Change over 2007 YTD November 30 |
|---|---|---|
| TSX value traded | $1,741.8 billion | +10 % |
| TSX volume traded | 98.8 billion shares | +11 % |
| TSX transactions | 166.5 million | +53 % |
| TSXV value traded | $23.2 billion | -45 % |
| TSXV volume traded | 39.6 billion shares | -19 % |
| TSXV transactions | 5.6 million | -31 % |
3. Expertise and Innovation
Toronto Stock Exchange and TSX Venture Exchange are global leaders in the listing of companies in such diverse sectors as mining, oil & gas, technology, life sciences and financial products. That expertise has evolved in part because of the strong market support present in Canada for companies in both the natural resources sectors as well as in the dynamic and innovative science sectors.
Innovation also extends to listings vehicles. The Capital Pool Company® (CPC™) program on TSX Venture Exchange allows seasoned directors and officers to raise capital with no commercial operations, but with a two year timeline in which to acquire a business or investment that meets listing criteria.
On the other end of the spectrum, the income trust model provides companies with a strong history of earnings a mechanism that distributes cash flow to investors in a tax-efficient manner.
