TSX Venture Exchange – Definition

Cite this article as:"TSX Venture Exchange – Definition," in The Business Professor, updated April 22, 2019, last accessed November 26, 2020, https://thebusinessprofessor.com/lesson/tsx-venture-exchange-definition/.


TSX Venture Exchange Definition

TSX Venture Exchange is stock exchange (a market in which securities are bought and sold) where all stock tradings are performed electronically. It operates in Canada, Calgary and Alberta. The headquarters of TSX is pitched at Calgary and Alberta but is has other offices in places like Montreal, Vancouver and Toronto. Before this venture exchange assumed the name ‘TSX Venture Exchange’, it was formerly called the Canadian Venture Exchange (CDNX). CGNX was renamed TSX due to a merger between Vancouver and Alberta stock exchanges.

A Little More on What is TSX Venture Exchange

TSX Venture Exchange has over 1,600 companies on its list with 400 on the venture composite index. TSX uses several criteria in selecting its index. Primarily mining and traditional energy companies make up the composite index. Despite that TSX Venture Exchange’s goal is enable venture companies have access to investment capitals, the protection of investors is also crucial to it.

TSX Venture Exchange operates effectively by grouping its listed companies. Its most popular stocks which include mining and oil/gas companies, companies from clean energy, diversified industries and life science industries are grouped into the TSX Venture 50 index

U.S investors invest in TSX Venture Exchange listed companies using two channels such as using brokerage accounts.

Due to an agreement among some countries to realign the Canadian market in order to narrow down its operation, the Canadian Venture Exchange (CDNX) was birthed. The origin of TSX Venture Exchange can be traced back to November 29, 199 when the Canadian Venture Exchange started.

CDNX had its focus on small companies that have assets that are insufficient to be listed on Toronto Stock Exchange. TSX which was formerly called CDNX evolved as a result of the merger between the Vancouver and Alberta stock exchanges. TSX has its corporate headquarters in Calgary and Alberta, and its other operations and offices in Vancouver, Columbia, Montreal and Toronto.

References for TSX Venture Exchange

Academic Research on S&P/TSX Venture Composite Index

Price and volatility spillovers across North American, European and Asian stock markets, Singh, P., Kumar, B., & Pandey, A. (2010). International Review of Financial Analysis, 19(1), 55-64.

The profitability of technical trading rules: A combined signal approach, Lento, C., & Gradojevic, N. (2007). Journal of Applied Business Research, 23(1), 13.

Positive feedback trading in stock index futures: International evidence, Salm, C. A., & Schuppli, M. (2010). International Review of Financial Analysis, 19(5), 313-322.

Daily happiness and stock returns: Some international evidence, Zhang, W., Li, X., Shen, D., & Teglio, A. (2016). Physica A: Statistical Mechanics and its Applications, 460, 201-209.

Measuring persistence in stock market volatility using the FIGARCH approach, Bentes, S. R. (2014). Physica A: Statistical Mechanics and its Applications, 408, 190-197.

SARS: a non-event for affected countries’ stock markets?, Nippani*, S., & Washer, K. M. (2004). Applied Financial Economics, 14(15), 1105-1110.

The effect of demand on stock prices: new evidence from S&P 500 weight adjustments, Hrazdil, K. (2009). Managerial Finance, 35(9), 732-753.

The economic determinants of CEO stock option compensation, Chourou, L., Abaoub, E., & Saadi, S. (2008). Journal of multinational financial management, 18(1), 61-77.

International economic policy uncertainty and stock prices: Wavelet approach, Ko, J. H., & Lee, C. M. (2015). Economics Letters, 134, 118-122.

A two-stage stochastic mixed-integer programming approach to the index tracking problem, Stoyan, S. J., & Kwon, R. H. (2010). Optimization and Engineering, 11(2), 247-275.

Was this article helpful?