A Short History of the Canadian Stock Market
With offices in Canadian cities like Calgary, Vancouver, Winnipeg, and Montreal, the Toronto Stock Exchange is Canada's largest stock exchange. The TSX as the Toronto Stock Exchange is also known, has helped make Toronto the third largest financial center in North America. Not only is the TSX Canada's largest stock exchange, it has become one of the world leaders and is currently the seventh largest.
From a humble beginning in 1861 when 24 men launched the Toronto Stock Exchange, the TSX quickly incorporated in 1878 through an Act of the Legislative Assembly of Ontario. Through a merger with the Standard Stock and Mining Exchange - a major competitor - in 1934 the TSX continued to grow.
Through realignment, the Toronto Stock Exchange has become Canada's single exchange for the trading of all senior equities. Further to this, the Bourse de Montréal/Montreal Exchange assumed responsibility for the trading of derivatives. Finally, the Vancouver Stock Exchange and Alberta Stock Exchange joined to form the Canadian Venture Exchange, which handles trading in junior equities.
How Can I Invest In The Canadian Stock Market?
First we must understand what a stock market is and how it functions. A stock market or exchange, bourse, share market etc, is simply a corporation or mutual organization that provides a facility to enable stock brokers and stock traders to trade eligible company issued stocks or other forms of securities.
Some of the securities that can be traded on a stock exchange including the TSX include such things as company issued shares, investment products that are pooled, bonds and unit trusts. In order for a trade of securities to take place on a stock exchange, it must first be listed there. The actual trade on an exchange takes place between members of the exchange and stock and shareholders.
