The TSX is widely considered to be the most significant Canadian stock exchange working at present. First instituted in 1852, the TSX has grown to become the 3rd largest stock exchange in North America in regards of capitalization, only behind the Nasdaq composite & the New York Stock Exchange.
Basics of the Toronto Stock Exchange:
Quite identical to any U.S based stock exchange, the Toronto Stock Exchange lets investors to purchase & sell securities during their standard operation hours (9:30am to 4:00pm). Investors who purchase & sell stocks on the NYSE & the Nasdaq will find that the Toronto Stock Exchange operates within a similar time period.
To get listed on the Toronto Stock Exchange, a company may be needed to fulfill a string of diverse regulatory standards relying especially on the business’ nature. For instance, technology firms that are looking to get listed on the TSX should first show at least $50,000,000 market value for future issued securities. Firms having specialization in research & development must show at least $12,000,000 market value for future issued securities. Other parameters with exact benchmarks that need to be met include net tangible assets, sponsorship needs, pretax earnings and operational history among others.
Buying Canadian stocks:
Canadian markets have long been accessible for American investors. It’s not unusual for stocks indexed on the Toronto Stock Exchange to also be indexed on foremost American exchanges. Provided that, investors can still invest directly in Toronto STOCK Exchange listed securities if they want!
In order to do that, American investors will most probably require to sign up the services of an online brokerage that has enabled access to the Toronto Stock Exchange. Some instances of entitled brokerages include TD Ameritrade & E-Trade. Quite like a person can buy stocks from the NYSE via these online podiums, Toronto Stock Exchange stocks will also be accessible.
Buying stocks online will probably need individuals to reimburse a commission fee for each entitled trade. In spite of which specific index a person is buying stocks from, commission charges will probably accumulate for every trade done.