The Toronto Stock Exchange (TSX) is Canada’s version of the New York Stock Exchange. Similarly, the TSX Venture Exchange (TSX-V) is like the NASDAQ for small-cap companies or the OTCBB.
Who is listed on the Toronto Stock Exchange (TSX-V)?
There are over 1,600 companies listed on the Toronto Stock Exchange (TSX-V). Hundreds of these companies are included in the S&P/TSX Venture Index. The companies listed in this composite index are mainly mining companies (57%) and technology firms (10%). The majority of these companies are located in British Columbia, Alberta, and Ontario, where these industries have significant operations.
How to invest in stocks on the Toronto Stock Exchange (TSX-V)?
If you are in the United States, Canadian stock markets are easily accessible due to the close ties between the two countries. Additionally, there are tax treaties between Canada and the United States that prevent issues typically associated with international investing, such as double taxation. You will need to apply for a foreign tax credit or deduction on Form 1040 or 1116 with the IRS if you wish to trade on the Toronto Stock Exchange.
Popular stocks on the Toronto Stock Exchange (TSX-V)
With the number of companies listed on the Toronto Stock Exchange (TSX-V), you have many options to choose from when making investment decisions. The most popular stocks on the exchange are compiled into an index known as the TSX Venture 50 – a collection of strong companies in the clean energy, diversified industries, mining, oil and gas, and life sciences sectors.
The components of this index are selected based on several criteria. They must have a market capitalization of over CAD 5 million, a closing stock price above CAD 0.25, be listed for more than a year, and have a stock price of at least CAD 0.10 in the previous year.
Some of the most popular stocks on the Toronto Stock Exchange (TSX-V) include:
- Storm Resources Ltd. (SRX)
- Gold Standard Ventures Corp. (GSV)
- Tidewater Midstream & Infrastructure (TWM)
- Gold Reserve Inc. (GRZ)
Conclusion
The Toronto Stock Exchange (TSX-V) is Canada’s version of the NASDAQ for small-cap companies in the over-the-counter markets. If you are an international investor looking for higher-risk investments, especially in the raw materials and energy sectors, you may want to take a closer look at the exchange as a means to diversify your portfolio abroad.
Source: https://www.thebalancemoney.com/what-is-the-tsx-venture-exchange-tsx-v-1979065
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