Global One Media Group Editorial Team

The Toronto Stock Exchange Venture Exchange (TSXV) is Canada’s junior listings market, providing a platform for small and mid-sized companies to access capital. Recognized globally, the TSXV serves as a gateway for growth-stage companies, particularly in sectors like mining, energy, and technology. This exchange is essential for investors looking to diversify their portfolios with potential high-growth investments.

Investing in the TSXV can be attractive for several reasons:

1. Diversity of Sectors: The TSXV lists companies across various industries, offering unique investment opportunities.
2. Potential for High Growth: Many companies on the TSXV are in their early stages, presenting the possibility of significant returns.
3. Access to Emerging Markets: The TSXV includes companies operating globally, providing exposure to emerging markets.

The TSX Venture Exchange (TSXV), located in Canada, is distinctive from other stock exchanges due to several key characteristics:

1. Focus on Small and Medium Enterprises (SMEs): TSXV is tailored for small and medium-sized enterprises. It provides these companies with a platform to access venture capital, which is often more challenging to secure through larger exchanges.
2. Junior Listings: The exchange is well-known for its significant number of junior listings, particularly in sectors like mining, oil and gas, and technology. These are often early-stage companies with a higher risk/higher reward profile.
3. Tiered System: TSXV operates a unique two-tiered system. Tier 1 is for more advanced companies with more significant financial and resource requirements. Tier 2 is for smaller or early-stage companies. This structure helps tailor the regulatory and listing requirements to the size and stage of the company.
4. Graduation to TSX: The TSXV serves as a feeder system to the Toronto Stock Exchange (TSX). Companies that grow and meet higher listing standards often “graduate” to the TSX. This pathway provides a clear route for growth and increased exposure.
5. Regulatory Environment: The TSXV, like other Canadian exchanges, operates under a different regulatory environment than exchanges in the U.S. or Europe. This includes specific rules around financing, corporate governance, and disclosure that are designed to be more accommodating for smaller companies.
6. Investor Base: The exchange has a unique investor base interested in venture-stage investments. This includes both retail and institutional investors who are accustomed to the higher risk and potentially higher returns of such investments.
7. Global Reach: Although it’s a Canadian exchange, TSXV has a global reach, attracting international companies and investors, particularly those interested in resource-based sectors.
8. Access to Capital: TSXV provides easier access to capital for small-cap companies compared to larger exchanges, which often have more stringent listing criteria and requirements.

These qualities make the TSX Venture Exchange an attractive option for smaller, growth-oriented companies seeking capital and exposure, and investors seeking exposure to companies with high growth potential, especially in specific sectors like natural resources and technology.

Canadian investors have several avenues to invest in the TSX Venture Exchange (TSXV). Here are some of those methods.

1. Direct Stock Purchase through Brokerage Accounts: The most common method is to buy stocks directly through a brokerage account. Canadians can choose from various brokers, including traditional full-service brokers and online discount brokers. Examples include TD Direct Investing, RBC Direct Investing, Scotia iTRADE, BMO InvestorLine, Questrade, and Wealthsimple Trade.
2. Exchange-Traded Funds (ETFs): ETFs that focus on Canadian small-cap or venture stocks can include companies listed on the TSXV. ETFs are traded like stocks and can be purchased through a brokerage account.
3. Mutual Funds: There are mutual funds that invest in small-cap Canadian companies, which may include TSXV-listed companies. These can be purchased through financial institutions, investment advisors, or directly from mutual fund companies.
4. Managed Portfolios or Investment Advisory Services: Investors can use managed portfolio services or investment advisors who can make investments in TSXV-listed companies on their behalf.
5. Tax-Advantaged Accounts: Investments in the TSXV can be held in tax-advantaged accounts like Tax-Free Savings Accounts (TFSAs) or Registered Retirement Savings Plans (RRSPs). These accounts offer tax benefits and can be used to purchase stocks, ETFs, and mutual funds that include TSXV investments.
6. Robo-Advisors: Some robo-advisors may include TSXV-listed stocks in their portfolios, depending on the investor’s risk profile and investment strategy.
7. Private Placements: Accredited investors can participate in private placements offered by companies on the TSXV. This involves directly purchasing shares from the company, usually before they are offered to the public.
8. Stock Options and Derivatives: For more experienced investors, options and other derivatives based on TSXV stocks can be a method of investment, albeit an indirect one.

Each of these methods varies in terms of the level of active management required, risk exposure, potential returns, and liquidity. Investors should consider their investment goals, risk tolerance, and investment knowledge when choosing the method that best suits their needs. Additionally, consulting with a financial advisor can provide personalized advice and guidance.

International investors have several options to invest in the TSX Venture Exchange (TSXV), although the methods may vary depending on their location and the regulations of their home countries. Here are some common ways international investors can invest in the TSXV:

1. International Brokerage Accounts: Use a brokerage account that offers access to international markets, including Canada. Brokers like Interactive Brokers, Charles Schwab, and Fidelity are known to provide access to Canadian markets for international clients. Some Canadian brokers allow non-residents to open accounts as well. This might involve more complex registration processes and adherence to both Canadian and the investor’s home country’s regulations.
2. Global Trading Platforms: Platforms that cater to global investors often include access to multiple stock exchanges, including the TSXV. These platforms can be more convenient for managing a diversified international portfolio.
3. Mutual Funds and Exchange-Traded Funds (ETFs): Invest in international mutual funds or ETFs that include Canadian small-cap or venture companies, some of which may be listed on the TSXV. These funds can be accessed through local brokers or financial institutions in the investor’s home country.
4. Asset Managers and Investment Firms: Hiring an asset manager or an investment firm that specializes in Canadian or international markets can be an option. They can manage investments on your behalf, including those in the TSXV.
5. Partnerships or Joint Ventures: For larger or institutional investors, forming partnerships or joint ventures with Canadian entities can be a pathway to invest in ventures listed on the TSXV.
6. Private Placements: Participate in private placements offered by TSXV-listed companies. This is typically available to accredited or institutional investors and involves directly purchasing shares from the company.
7. ADR (American Depository Receipts): If a TSXV-listed company has ADRs traded in the United States, international investors can invest through these ADRs, which are available through many international brokerage accounts.

The TSX Venture Exchange (TSXV) in Canada is a specialized market primarily for Small and Medium Enterprises (SMEs) and early-stage companies, particularly in sectors like mining, oil and gas, and technology. Characterized by its unique two-tiered system, the TSXV caters to companies at different stages of growth, providing a pathway for eventual graduation to the larger Toronto Stock Exchange (TSX). This exchange appeals to a diverse investor base, familiar with the high-risk, high-reward nature of venture-stage investments. While it offers smaller companies easier access to capital, investors should approach the TSXV with caution, balancing their quest for high-growth opportunities with prudent risk management strategies to succeed in this dynamic investment landscape.

2023 was a challenging year for everyone’s wallets. Fortunately, there is a reason for cautious optimism this 2024 with news that inflation is dropping¹ and interest rates may shortly fall.²

Fresh from starting from a brand new year slate, there are several financial goals to pursue in 2024 for current and aspiring money savers. We’ve rounded up seven money-saving pointers to jumpstart your savings journey and into the path of better financial health. The following tips could both safeguard and expand your existing funds significantly throughout the year.

Don’t count on a sudden miracle that you’ll get rich overnight, establish your plans for financial success. For reference, some people’s financial goals are to have enough financial security to avoid stressing about money. While others aim to save enough money to afford a dream vacation or to buy a house. 

It’s gonna take some time planning so start listing and prioritizing your financial aspirations and then create a roadmap for achieving them. A well-known goal-setting technique is the SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) Criteria:

Source: Mindtools.com

Without goals to strive for, your financial journey is likely to be less exciting and aimless so start your year right by making plans today.

The road to a better financial standing is tough but fulfilling. So make sure your roadmap is realistic. To ensure that you can consistently monitor your money-saving progress, it is important to create a budget. A simple budgeting framework to try is the 50/30/20 rule³:

• 50% of your income for needs (housing, food, transportation, etc.)
• 30% of your income for wants (travel, entertainment, etc.)
• 20% of your income to savings and debt repayment (examples include creating an emergency fund or saving for retirement)

By having a budget, you’ll better understand how much you earn and spend in a specific time period. This allows you to pinpoint where you should cut your expenses. Learning how to budget, especially with little to no experience, takes time and practice but it will be worth it in the end.

One of the first steps you take when you start saving money is to build an emergency fund, especially in today’s volatile and unpredictable economy. Setting money aside for unplanned financial setbacks ensures that you will be able to recover quicker and get back on track to reaching your financial goals.

A common suggestion is to have enough cash to cover three to six months of expenses.⁴ Also, you can consider keeping your emergency money in a separate bank account. This distinguishes the money set for emergencies from those allocated for regular expenses and savings goals.

If you haven’t already, it is time to catch up with the digital age and explore different money-saving apps. These include financial goal-setting, automated saving, and expense tracker apps that can make your money-saving journey in 2024 less of a hassle. In particular, the best budgeting apps monitor your savings, investments, debts, and/or credit score.

A fad nowadays is digital consumers looking to save on their online shopping expenses by availing of digital coupons or e-coupons. These are available nowadays on a store’s website, digital newsletters, digital coupon apps, coupon sites, and browser add-ons.⁵

There’s always a chance that you could lose your main source of income and the impact can be severe to your financial health. A solution to provide yourself a safety net is to diversify your sources of income. 

A common way is to build your passive income through making investments. The income can come from your portfolio’s investment mix of individual stocks and bonds, mutual funds, and exchange-traded funds. Investments can help you accumulate wealth over time. You could boost your net worth and financial freedom by allowing your investments to grow.

If you can, find a financial accountability partner. They should be a trusted person who can provide you with the accountability and support needed to stay consistent with your money-saving habits. Having a partner to share your financial goals with gives you a sense of shared responsibility and mutual motivation. It’s a plus if your partner is well-versed in financial planning because they can offer insights, identify potential challenges, and help with budgeting and growing your money.

The financial landscape is always changing. Keeping yourself informed and updated with what’s going on in banks, financial markets, and the global economy equips you with the knowledge to make wiser financial decisions. The best ways to stay updated with all financial news happening worldwide include checking credible news sites and listening to reputable podcasts. You can start being your own financial guru by simply installing financial news apps on your smartphone to receive real-time news alerts. Just be sure to develop a consistent routine of staying informed.

Empower yourself with more financial knowledge by reading the articles found in Global One Media’s blog.

^{1  World Bank Blog. Is the great inflation scare over? The case for cautious optimism.
2  CBS News. Federal Reserve leaves interest rate unchanged, but hints at cuts for 2024.
3  NerdWallet. Budgeting 101: How to Budget Money.
4  Securian Financial. 5 steps to building an emergency fund
5  Microsoft. Understanding digital coupons and e-coupons}

Do youngsters these days spend all their money on espressos and Gucci? Survey says that, well, not really. A report¹ published by consumer financial services company Bankrate showed that young people are putting quite a bit of money into investments and are getting very active in the stock market.

Despite market uncertainties earlier this year, Gen Z pulled far ahead of other generations in trading stock investments. Gen Z, it seems, moved on quickly from the summer romance of meme stocks and market bubbles towards a full-fledged love affair with stock investments.

Persistent inflation and interest rate hikes rocked financial markets in the first half of 2023. While the fear of stock losses permeated the market, no generation was as concerned with their stocks as Gen Z. Bankrate’s report indicated that, during the period, 87% of American Gen Z investors took some form of action with their stock portfolio—a wide margin compared to just 68% of millennials, 38% of Gen X, and only 35% of baby boomer investors.

The enthusiasm does not stop there. Though Bankrate found that only about a quarter of all American investors intend to put more money into stocks, about 53% of Gen Z investors intended to increase their holdings. The average was in fact largely dragged down by Gen X and baby boomers where only 19% and 9% of investors intended to put more money in stocks, respectively.

There are some important reasons why Gen Z became the most active generation when it comes to investing. The proliferation of investing-oriented social media channels², for one, made relevant information far easier to access. 

According to a recent study³ by the non-profit CFA Institute, social media is a leading source of investment education for Gen Z. Almost half, or 48%, of American Gen Z investors use social media platforms to learn about investing. It also ranked highly in Canada, the UK, and even China.

Another cited reason is “FOMO” or “Fear of Missing Out”. About 41% of US Gen Z investors and up to 60% of their Chinese counterparts did not want to miss out on the opportunities, maybe even egged on by friends who already made returns. In a way, this created a snowball effect where friends and acquaintances became crucial movers in stock investing. 

CFA Institute’s report also highlighted the spread of stock investment apps, which made investing a far easier process⁴; and the rise of cryptocurrencies, which proved popular among younger investors.

Young investors are undoubtedly having the time of their lives with the stock market with youth trying to get started with investments as soon as possible. CFA Institute found that 82% of US Gen Z investors began to do so before they turned 21.

Still, there are some inherent challenges for the Gen Z cohort. Despite the seemingly endless optimism, CFA Institute noted that money problems remained a common barrier for Gen Zs to invest. And even though more investment material is accessible on social media, lack of knowledge remains widespread with more than 50% of the demographic in the US, UK, and Canada reporting it is a problem.

But an even bigger question still is if Gen Z enthusiasm can be matched by real returns. Studies have pointed⁵ out that active trading doesn’t guarantee good performance. In fact, passive investors can easily outperform day traders. It’s easy to imagine that many Gen Z investors will, perhaps, learn the lessons of investing the hard way. 

Nevertheless, young people’s interest in the stock market is never a bad thing. Bankrate Chief Financial Analyst Greg McBride highlighted that “it is important for Gen Z and millennial investors to maintain the long-term focus, increasing contributions to stock-related investments, and harnessing the power of compounding higher rates of return.”

Instead of treating Gen Z’s hurdles as problems, companies, non-profits, and educators must instead look into the opportunities to turn curiosity into a real productive force.

At Global One Media, we seamlessly deliver our client’s message to potential young investors by harnessing the extensive outreach of social media.

Connect with us today and let us start your brand’s journey in the digital space.

^{1 James Royal. Survey: More than half of investors bought, sold or withheld stock contributions t his year due to inflation, safer bank returns
2 Global One Media. How Social Media Became a Powerful Tool for Investment Literacy and Business
3 CFA Institute. New research shows Gen Z are immersing themselves in the world of investing
4  Global One Media. Getting Millennials and Gen Zs to Invest is Easier Than You Think
5 Brad Barber, Terrance Odean. Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors}

What are the OTC markets? And how can investors access them? Shares traded on the OTC markets follow a unique process. OTC, short for “over-the-counter”, represents stocks not listed on major centralized exchanges like the New York Stock Exchange (NYSE) or the Toronto Stock Exchange (TSX). Instead, OTC trading occurs directly between parties, facilitated through a network of broker-dealers, without a central exchange.

• Decentralized Trading: Instead of a centralized marketplace, these stocks are bought and sold through a decentralized network.
• Cost-Effective: OTC stocks are typically cheaper in price compared to those listed on traditional exchanges.

OTC markets cater to a diverse range of companies, from startups to established businesses that have opted for OTC listing for specific reasons. Here’s why certain stocks might end up on OTC markets:

• Startups and Emerging Companies: Many companies that are just starting out may not meet the volume or financial requirements of traditional stock exchanges. OTC markets offer them an avenue to raise capital without the restrictions of major exchanges.
• Cost-Effective Listings: Being listed on major stock exchanges can be an expensive endeavor. To save money, some companies choose to list their stocks OTC.
• Delisting from Major Exchanges: There are instances where companies previously listed on major exchanges shift to OTC markets. Here are some reasons for such a move:
• Going Private: A business may decide to retract its public status and go private, leading to its delisting. However, its stock may still trade OTC.
• Selective Delisting: If a company chooses to delist certain classes of its stock but not all, the delisted stocks might continue trading over-the-counter.
• Regulatory Actions: In some situations, a company might be forced off an exchange. This could be due to non-compliance with exchange rules or regulations set by governing bodies like the US Securities and Exchange Commission (SEC). In such cases, the stocks may find a home in OTC markets.

Trading OTC stocks can offer unique opportunities, but potential investors should also be aware of the risks associated with less regulation and transparency. As with any investment, thorough research and due diligence are crucial.

OTC stocks are traded on one of three exchanges owned by the OTC Market Group. These markets exist in the US and are regulated by the SEC. Canada, on the other hand, does not have an OTC market.

OTCQX:

• Referred to as the “best market”.
• Has strict listing standards, excluding penny stocks.
• Hosts many blue-chip companies from regions like Canada, Europe, Brazil, and Russia. An example is Heineken N.V. (HINKF).
• OTCQX replaced the OTCBB (Over The Counter Bulletin Board) as the primary OTC trading market in November 2021. The OTCBB no longer operates.

OTCQB:

• Termed as the “venture market”.
• Sits between OTCQX and OTC Pink in terms of standards.
• Penny stocks can be listed.
• Typically includes growing global companies.

OTC Pink:

• Known as the “open market”.
• Designed for stocks that don’t qualify for the other two markets.
• Riskiest due to lack of stringent requirements; no mandatory company disclosure for listing.
• Serves as a default market.

OTC Stock Lists:

• Over 12,000 different stocks are listed in the OTC markets.
• Despite lesser media attention than stocks on exchanges like TSX, many legitimate and large companies are found on OTC markets.
• Some companies choose OTC markets to sidestep SEC regulations or due to delisting from larger exchanges. Others, despite being large, opt for OTC listings over other prominent exchanges.

Below are some brokers that enable their clients to trade OTC stocks.

1. Interactive Brokers: This online brokerage offers the option to trade OTC stocks.
2. Questrade: A versatile, self-managed online trading platform.
3. CIBC Investor’s Edge: This platform does not support online trades of OTC stocks.
4. Scotiabank: Allows trading of OTC stocks in addition to transactions on official markets.

The OTC markets are a good option for companies and investors to enable both to achieve their objectives. Companies can raise needed funds for their projects, and investors can gain access to promising enterprises with high growth potential. It is important to define your objectives and manage risk very proactively before making investment decisions that will impact your portfolio. Global One Media offers you usually the needed information to help you make those decisions. It is also crucial that you use a trusted broker to ensure safety, security, and good performance.