TSXV >>> TSX How companies graduate from TSX Venture Exchange
TSXV and TSX cater to companies at different stages of growth. Learn what it takes for a company to move from TSXV to TSX.
Toronto Stock Exchange Dec. 1, 2020 2-minute read
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Toronto Stock Exchange (TSX) is the flagship Canadian stock market. It shouldn’t be confused with its smaller but equally important counterpart, TSX Venture Exchange (TSXV). Both exchanges serve the same purpose — offering financing opportunities for companies and liquidity for investors — but cater to companies at different stages of growth.
Two-tier marketplace
TSX is reserved for established companies that are typically valued at over $50 million. On the other hand, TSXV offers earlier-stage companies access to public venture capital to help spur growth and establish a footprint in the capital market.
TSXV companies are mostly valued between $500,000 and $20 million. There are separate listing requirements based on the industry they operate in, as well as other factors. Companies listed on TSXV will be given the opportunity to “graduate” to TSX when they grow past the TSXV threshold.
TSX and TSXV are both subsidiaries of TMX Group, their parent company.
Graduation party
TSX has welcomed over 650 TSXV-listed companies that crossed over to the larger exchange over the years. In fact, approximately 20% of all companies in the S&P and TSX Composite Index1 trace their roots to TSXV.
To graduate, TSXV-listed companies must first meet TSX listing requirements of their particular industry, then they submit an application, audited financial statements and recent quarterly statements for review by TSX.
Once approved for graduation, these companies have the opportunity to access a wider pool of capital and attract greater attention from institutional investors across the world. Companies also benefit from the greater visibility and enhanced reputation that comes with being listed on an elite exchange with a global reputation.
Shares in companies listed on TSX are typically more liquid due to higher trading volumes, which is an advantage for their shareholders and other market participants.
TSXV stocks aren’t as closely tracked by global investors, who are typically more focused on following TSX.
www.investorsedge.cibc.com/en/learn/graduate-from-tsx-venture-exchange.html#:~:text=To%20graduate%2C%20TSXV-listed%20companies,statements%20for%20review%20by%20TSX.