Larger numbers of U.S. companies are getting listed on TSX to
gain, including many firms whose business is closely related to natural
resources. According to Franconia CEO, there is a Canadian appreciation for
natural resources that help to get listed on TSX. If the company is doing well
in Toronto, the wise investors get to know that it is because the company has
passed the group of sophisticated natural-resource market there. Operating
primarily in the mining and oil & gas sectors, about half of the 347
international listed companies on TSX and TSXV are based in the U.S. Canada
provides access to capital – and a welcoming environment – for many companies
located in other countries. U.S. issuers raised $1.2 billion in Equity capital
in 2011.
The IPO market in U.S. has become stricter, especially for
the Small companies, probably the reason why U.S. small companies are moving to
Toronto Stock Exchange. The tremendous infrastructure of Toronto stock exchange
which is capable of supporting the growth of Small scale companies is the probable
reason of the increasing number of companies listing on TSX. The venture backed
technology companies of U.S. like NovaBay are getting listed on TSX and on Canada's
micro-cap market, TSX Venture Exchange, to raise funds earlier than they could
do in U.S.A.
The Corporate governance of both TSX and TSX Venture Exchange
is similar to that of U.S. But the small companies have, some significant
exemptions, unlike NASDAQ or NYSE. The newly incorporated company, which would
have been otherwise opted for venture capital financing, can list on TSX and
raise capital from public. The TSX has over 3,900 companies listed which are
more than any stock exchange in North America, including NASDAQ and NYSE. There
are more than 340 technology companies and over 140 life science companies on
TSX.
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