Canadian Stock Information
According to the Forbes investing information website Investopedia, Canadian stocks are traded on a number of different stock exchanges. In 2010, 3 Canadian stock markets traded in different types of investments, which are the Montreal Exchange, the Toronto Stock Exchange (TSX) and the TSX Venture Exchange.
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History
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The history of trading stocks in Canada dates back to the early to middle period of the 19th century, when groups of traders began meeting informally to trade stocks in banks in the cities of Montreal and Toronto. Investopedia reports that prior to these informal stock trading groups, all Canadian stocks were traded on the London Stock Exchange, including Canada's oldest large company the Hudson's Bay Company. The TMX Group website explains the first informal trading of stocks began in Montreal in 1832 with the first traders association established in 1849. Trading in Toronto did not begin until 1852 with the first records kept of trades on October 25. 1861. The Investor Words website reports the Montreal Exchange was responsible for introducing stock options to Canada.
Markets
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Investopedia explains that as of 2010, 3 markets are operated by the TMX Group, the umbrella group under which all Canadian stock exchanges operate. Originally, 4 stock exchanges operated in Canada, which were Toronto, Montreal, Vancouver and Alberta. In 1999 the Vancouver and Alberta exchanges merged to create the Canadian Venture Exchange dealing in junior equities. 1999 saw the realignment of the Toronto and Montreal exchanges to trade in senior equities in Toronto and derivatives trading in Montreal.
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Merger
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Before realignment of the Canadian stock market in 1999, stocks and shares were traded on all 4 of Canada's original markets. According to Investopedia, the Toronto Stock Exchange began acquiring the other stock exchanges in Canada following the demutualization process of 1999, which allowed the TSX to become a for-profit organization. The two largest exchanges of Montreal and Toronto merged in 2007 to become the TMX Group. The Montreal Exchange explains the TMX Group was formed in May 2008 to run Canada's 3 stock markets.
Size
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Canada's stock exchanges have remained independent and secure even in times of economic panic, such as the Great Depression. Investopedia reports that by 1936, the TSX had become North America's third largest stock market. By merging the Canadian stock markets under one company, the TMX Group became the world's second largest stock exchange by number of listed companies in August 2008. The TMX Group stock exchanges contained around 4,000 listed companies.
Types
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The TMX Group of stock exchanges trades in a variety of listed companies, but the highest number of companies listed are financial institutions and mining companies. According to Investopedia, in 2008 the TMX Group listed the largest number of mining companies of any exchange in the world.
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References
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