The difference between TSX and TSXV is in the listing requirements. TSX focuses on senior issuers, and TSXV focuses on early-stage companies looking to access growth capital.
The Toronto Stock Exchange (TSX) is like Canada’s version of the New York Stock Exchange. In this manner, the TSX Venture Exchange (TSXV) is like the Nasdaq small-cap or OTCBB exchanges.
What is Toronto Stock Exchange (TSX)?
The term Toronto Stock Exchange (TSX) refers to a Canadian stock exchange located in Toronto, Ontario.
Founded in 1861, the TSX is Canada’s premier stock exchange with more than 1,500 listed companies, including those from the energy, mining, technology, and real estate sectors.
The exchange is also home to international listings and exchange-traded products. It became fully electronic after closing its trading floor in 1997.
In 2007, the TSX merged with the Montreal Exchange (MX) to form the TMX Group.
What is TSX Venture Exchange (TSXV)?
TSX Venture Exchange is a stock exchange in Calgary, Alberta, Canada that was originally called the Canadian Venture Exchange (CDNX). It resulted from a merger between the Vancouver and Alberta stock exchanges.
TSX Venture Exchange also has offices in Toronto, Vancouver, and Montreal.
Who lists on the Toronto Stock Exchange?
The Toronto Stock Exchange consisted of over 1,500 companies, as of 2017, worth a total of $1.77 trillion in market capitalization.
The majority of these companies are based in Ontario (52%).
A substantial portion of the exchange’s market capitalization also comes from Alberta (25%), due to the region’s rich natural resources, namely, oil and gas in the oil sands.
The exchange’s breakdown of sectors by market capitalization shows a skew towards financial services (38%), energy (20%) and materials (10%), while industrials and consumer discretionary round out the top five sectors.
Listing requirements on the Toronto Stock Exchange vary based on the type of company seeking a listing.
Smaller companies that don’t qualify for the TSX exchange may instead be listed on the TSX Venture Exchange, which is similar to the OTC Markets.
These companies have less of a track record and can be in development stages compared to the larger companies that are listed on the larger TSX exchange.
Who lists on the TSX Venture Exchange?
There are more than 1,600 companies listed on the TSX Venture Exchange. Nearly 400 of them are included in the S&P/TSX Venture Composite Index.
Companies listed in the composite index are primarily mining (57%) and technology (10%) companies.
The majority of them are located in British Columbia, Alberta, and Ontario, where these industries have prominent operations.
Popular stocks on TSX
The S&P/TSX 60 Index consists of the 60 largest companies listed on the exchange by market capitalization.
Some of the largest companies include:
- Royal Bank of Canada (RY)
- Toronto-Dominion Bank (TD)
- Suncor Energy Inc. (SU)
- Barrick Gold Corp. (ABX)
- Potash Corp. of Saskatchewan (POT)
Popular stocks on TSXV
Some of the most popular stocks on the TSX-V include:
- Storm Resources Ltd. (SRX)
- Gold Standard Ventures Corp. (GSV)
- Tidewater Midstream & Infrastructure (TWM)
- Gold Reserve Inc. (GRZ)
Final Thoughts
The Toronto Stock Exchange (TSX) is one of the largest stock exchanges in the world while the TSX Venture Exchange (TSXV) is Canada’s version of the Nasdaq Small Cap Index of over-the-counter markets.