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North American Exchanges

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North American Exchanges

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  1. North American Exchanges A brief outline to getting started

  2. Agenda • Exchange History/Securities Traded • NYSE • NASDAQ • TSX • TSX-V • Listing Requirements • NYSE • NASDAQ • TSX • TSX-V • Cross Listing

  3. Exchange Overview United States Exchanges AMEX NYSE NASDAQ BULLETIN BOARD PINK SHEETS Canadian Exchanges TSX TSX-V

  4. American Stock Exchange • History: • Began in 1800s • Streets of New York • 1921 moved indoors to Trinity Place • Merged with NASDAQ in 1998

  5. American Stock Exchange • 3rd largest exchange in North America • Auction Market • Caters to smaller companies • Owned by NASD

  6. American Stock Exchange • Common and Preferred stock • Exchange Traded Funds ( over 200 ) • Options • One of the largest options exchanges in the world • Options are traded on Common stock, ETF’s, ADR’s, HOLDR’s, LEAP’s, FLEX’s

  7. New York Stock Exchange • Began in 1972 • Focused on Government Securities in early years • Dow Jones began following NYSE in 1896

  8. New York Stock Exchange • Top Companies: • Walt Disney • Wal Mart • Ford • 3M • Proctor & Gamble

  9. NASDAQ • Began in 1971 as the 1st electronic exchange in the world • Increase trading of OTC stock • Dealers market

  10. NASDAQ • Top Companies: • APPLE • Microsoft • Intel • Google • Sun Microsystems

  11. OTC Bulletin Board/Pink Sheets • Began in June 1990 on a pilot basis • Approved for permanent status in 1997 • Provide Transparency in OTC markets

  12. OTC Bulletin Board/Pink Sheets • Securities include: • National, regional and foreign equity issues • Warrants • Units • American Depositary Receipts (ADRs) • Direct Participation Programs (DPPs)

  13. Toronto Stock Exchange • Began in 1852 • Largest stock exchange in Canada, 7th largest in the world • Lists 4,000 securities, averaging 250 million shares traded per day.

  14. Toronto Stock Exchange • Owned and run by TSX Group • Trades senior securities with strong historical performance • Became “for profit” company in 2000

  15. Toronto Stock Exchange • Top Companies: • Suncor • EnCana • Shell Canada • TD Bank • RBC

  16. TSX Venture Exchange • Began as Canadian Venture Exchange (CDNX) • Acquired by TSX group in 2001 • For companies who do not meet listing requirements of TSX

  17. New York Stock Exchange • Listing Requirements • US Companies • Non-US Companies • Associated Fees • Continued Listing Requirements

  18. New York Stock Exchange Listing Requirements • Meet certain qualifications • National interest • Stability in industry • Engaged in expanding industry • Keep public informed • Must be a going concern

  19. New York Stock Exchange Listing Requirements – US Companies

  20. New York Stock Exchange Listing Requirements – US Companies

  21. New York Stock Exchange Listing Requirements – Non-US Companies

  22. New York Stock Exchange Associated Fees Listing Fees Calculating Listing Fees • US Issuers • Foreign Private Issuers Annual fees • US Issuers • Foreign Private Issuers Maximum Payable Annual Fees

  23. New York Stock Exchange Continued Listing Requirements

  24. New York Stock Exchange Continued Listing Requirements

  25. New York Stock Exchange Continued Listing Requirements

  26. NASDAQ Listing Requirements • Global Select Market • Global Market • Capital Market Associated Fees • Entry Fees • Annual Fees Continued Listing Requirements

  27. NASDAQ Listing Requirements

  28. NASDAQ Associated Fees – NASDAQ Global Select & Global Market • Entry fees • Annual fees

  29. NASDAQ Associated Fees – NASDAQ Capital Market • Entry fees • Annual fees

  30. NASDAQ Continued Listing Requirements

  31. Toronto Stock Exchange Listing Requirements • Who Should List? • Financial Requirements • Foreign Companies Associated Fees

  32. Toronto Stock Exchange Listing Requirements Who Should List? • Well Managed • Growth Oriented • Strong Track Record • Publicly Distributed

  33. Toronto Stock Exchange Listing Requirements Financial Requirements

  34. Toronto Stock Exchange Listing Requirements Financial Requirements • Additional Requirements

  35. Toronto Stock Exchange Associated Fees Associated Fees • Listing Fees Range from $15,000 - $150,000 • Annual Fees • TSX Group, Investment Dealers, Provincial Securities Commissions, etc…

  36. TSX Venture Exchange Listing Requirements • Who Should List? • Tier 1 • Financial Requirements • Tier 2 • Financial Requirements Associated Fees

  37. TSX Venture Exchange Listing Requirements Who Should List? • Tier 1 • Reserved for ‘Premier’ junior companies • Emerging Companies • Goals toward senior status • Tier 2 • Early Stage junior companies • Seeking access to public venture capital

  38. TSX Venture Exchange Listing Requirements – Tier 1 Tier 1 – Financial Requirements

  39. TSX Venture Exchange Listing Requirements – Tier 2 Tier 2 – Financial Requirements

  40. TSX Venture Exchange Associated Fees Associated Fees • Listing Fees Range from $5,000 - $30,000 • Annual Fees • Additional Fees • Upgrade from tier 2 to tier 1

  41. What is Cross-listing Cross listing refers to shares that are officially listed on more than one exchange. They are traded freely away from their domestic centre.

  42. Advantages of Cross-listing Reduction in the firm’s risk • Lower cost of equity • Higher returns Increased Liquidity • Increased Visibility • Greater Analyst Coverage • Better investment recognition Increase potential shareholders • Increases US holdings of stock

  43. Disadvantages of Cross-listing Non-Canadian Firms Major costs • Registration • Compliance Change Accounting Practices • Must meet GAAP Submit Periodic Filings • Disclose all information

  44. Disadvantages of Cross-listing Canadian Firms No real disadvantages for Canadian firms • Minimal Reporting to SEC needed • Multi-Jurisdictional Disclosure System (MJDS)

  45. Solutions for Canadian and Foreign firms Canadian Firms • Should Utilize Cross-listing • Many Advantages • Few Disadvantages Foreign Firms • Do not Cross-list • Use ADR’s instead • Do not have to follow any rules • Bank takes on all responsibility

  46. New York Largest Market (capitalization) Lowest Transaction Costs Most # ADR’s Lowest # Cross Listed London Easy and Low cost to list Low reporting requirements Tokyo High Commissions Low Volume (not very Liquid) Where to Cross-list

  47. Thank You Any Questions?