Understanding the Stock Market and its purpose – Toronto Stock Exchange

Submitted by nsscadmin on Wed, 06/26/2024 - 09:00

Our blog series on understanding the stock market and its purpose continues this week with a closer look at the Toronto Stock Exchange (TSX). In part one of our series we looked at the general purpose of stock exchanges in Canada’s capital market. The rest of the series will highlight some of the stock exchanges that exist in Canada.

The TSX was originally launched as the TSE in 1861. At that time, it was considerably smaller than it is today with only 13 listings. It has undergone many changes through the years including: the closure of the trading floor and transition to electronic trading in 1997, becoming the sole exchange for the trading of senior equities in Canada in 1999, the rebranding to the TSX in 2002 following the creation of the TXS Group Inc., and in 2008 the TMX Group Inc. was created following the combining of the TSX Group and the Montreal Exchange Inc.

Today the TSX is the third largest exchange in North America behind only the New York Stock Exchange and the NASDAQ, and the 10^th largest stock exchange in the world. As of April 2024, the TSX had 1,801 listings and a combined market capitalization of $4.3 trillion. The largest and most widely held companies in Canada are listed on the TSX representing various economic sectors including energy, finance, mining, oil and gas, retail, and technology. The TSX isn’t limited to trading shares. Exchange Traded Funds, income trusts, closed-end funds and structured notes are also listed on the TSX.

To be listed on the TSX, a company must have net tangible assets of $7.5 million and declare pre-tax earnings of at least $200,000. A company that does not meet those requirements can list one of Canada’s smaller exchanges such as the TSX Venture, or Canadian Securities Exchange, which we will look at in upcoming parts of this series.

Failure to file annual financial statements.
Failure to file interim financial statements.
Failure to file an annual or interim management’s discussion and analysis (MD&A) or an annual or interim management report of fund performance (MRFP).
Failure to file an Annual Information Form (AIF).
Failure to file a certification of annual or interim filings required by Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109).
Failure to file required proxy materials or a required information circular.
Failure to file an issuer profile supplement on the System for Electronic Disclosure by Insiders (SEDI).
Failure to file a material change report.
Failure to provide a written update after filing a confidential report of a material change.
Failure to file a business acquisition report.
Failure to file annual oil and gas disclosure prescribed by National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (NI 51-101) or technical reports for a mineral project required under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
Failure to file a mandatory news release.
Failure to file corporate governance disclosure as required by national Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101).
Failure to file audit committee disclosure as required by Multilateral Instrument 52-110 Audit Committees (MI 52-110) or BC Instrument 52-509 Audit Committees.
Failure to include disclosure in an issuer’s MD&A relating to disclosure controls and procedures and their direct effectiveness that is referred to in a certificate filed under MI 52-109.
Financial statements of the reporting issuer, or the auditors’ report accompanying the financial statements, do not comply with the requirements of NI 51-102 Continuous Disclosure Obligations (NI 51-102), National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) or National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency (NI 52-107).
The reporting issuer has acknowledged that its financial statements, or the auditors’ report accompanying the financial statements, may no longer be relied upon.
The reporting issuer’s AIF, MD&A, MRFP, information circular, or business acquisition reports do not contain information for each of the content items required by NI 51-102 or NI 81-106.
The reporting issuer’s technical disclosure or other reports do not comply with the disclosure requirements of NI 43-101 or 51-101.
Failure to pay a fee required by the Act or the regulations.
Failure to comply with any other requirement related to continuous disclosure.