A Brief Overview of the Canadian Stock Market

Whether you want to learn about Canadian stock market or want to invest in it, we at Train2invest offer Canadian stock market education & training online. We have brought you some of the basic information about the Canadian stock market so that you can understand the market well and plan your investment. Have a look and gain knowledge about the stock market before investing into it.

What is the Canadian Stock Market?

The Canadian Stock Market is made of one large exchange and numerous small exchanges. The main exchange of the Canadian stock market is the Toronto Stock Exchange (TSX) which is the ninth largest exchange in the world. Again the TSX has a smaller exchange related with it i.e. the TSX Venture Exchange (TSX-V) that offers lower-priced stocks from upcoming and smaller companies. Besides these two there are other exchanges, however, TSX and TSX-V are the key exchanges.

What is TSX all About?

Toronto Stock Exchange (TSX) is owned by TMX Group Limited, which is a financial services company with headquarter in Canada. The company operates derivatives, equities, fixed income, and energy market exchanges. The TSX includes a wide array of Canadian businesses including stocks, income trusts, ETFs and investment funds. TMX came into existence when in 2009 TSX merged with the Montreal Stock Exchange and the parent company’s name changed.

How Canadian Stock Market Differs from the U.S Stock Market?

Canadian stock market is quite similar to that of the U.S stock market located towards further north. Although Canada located close to the US, it is a different country; hence, there are different things in both the markets. Some of the important differences between Canadian stock market and US stock market are as follows:

  • The Canadian Stock market is much smaller in size as compared to the US exchanges. Hence, there are fewer stocks to choose with Canadian stock market.

 

  • The Canadian stock market is traded in Canadian dollars and not US dollars. $1 US dollar = $1.30 Canadian dollars (it can fluctuate depending upon various factors).

 

  • The economy of Canada primarily relies on natural resources such as mining, oil and gas related companies. That’s not the case with US market.

 

  • As the government is different, the laws are different as well.

What are the benefits of investing in the Canadian Stock Market?

  • Major stocks at the Canadian stock market are related to natural resources such as oil and gas. It is one of the largest mineral exporters in the world, which makes it a dream of every commodity buyer.

 

  • Also, Canada is the largest supplier of potash, which is used for making fertilizer and significant in the agricultural sector.

 

  • Although  commodities can be volatile, they offer better growth opportunities. And with a myriad of commodities, people can invest considering the reliable patterns such as the seasonal aspect of these stocks.

 

  • The banking system of Canada is also considered as one of the safest and sound systems. Great balance sheets of the bank further strengthen the economy. And this positive financial position that makes the lending rates are lower than in other countries in the world.

Want to learn more about Canadian Stock Market? Then join our Canadian Stock Market Education & Training sessions today. More info at http://www.train2invest.com/

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