Canada is a G7 country with diverse natural resources; agriculture and mining industries etc. The economy of Canada is a highly developed market economy. However, the country’s economy is dominated by the service industry which employs about three quarters of Canadians. It is the 10th largest GDP by nominal and 16th largest GDP by PPP in the world. GDP per capita: 45,032.12 USD (2017)
The main stock exchanges in Canada is the TSX Stock Exchange (TSX) and the TSX Venture Exchange. The S&P/TSX Composite Index is the benchmark Canadian index, representing roughly 70% of the total market capitalization on the Toronto Stock Exchange with about 250 companies included in it. The Toronto Stock Exchange is made up of over 1,500 companies. The Toronto Stock Exchange (TSX) launched in 1861 the TSX is currently the ninth largest stock exchange in the world with the companies and equities listed valued over $2 trillion. The largest and widely held companies in the country are listed on the TSX and come from various economic sectors including finance, energy, mining, oil and gas and retail.
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.
Canadian exchanges have traditionally been home to the securities of many 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 the number of listed securities. In 2009, TSX merged with the Montreal Stock Exchange (Bourse de Montreal). To reflect ownership of both exchanges, the parent company, TSX Group, became TMX Group.
With the elimination of the trading floor in 1997, trades on the TSX are electronic, analogous to the Nasdaq in the United States. Traded instruments include 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. The Canadian dollar is designated for all transactions in the Canadian dollar.
This article is written by TRAIN2INVEST. North America’s leading investment education and training corporation. TRAIN2INVEST achieves this through teaching, training and coaching individuals in the art and science of self-directed investing with the foundation based on capital preservation. All investments are through the TSX.