02:00:46 EDT Tue 16 Apr 2024
Enter Symbol
or Name
USA
CA



Van Sun/CP say TSX-V tries to stop the rot

2016-05-20 06:50 ET - In the News

The Vancouver Sun reports in its Friday edition that after a long slide, the TSX Venture Exchange -- down more than 70 per cent from its March, 2011, highs -- has rebounded nearly 30 per cent this year. A Canadian Press dispatch to The Sun says, however, that the volume of shares traded on the market has also been steadily slipping. Last year, 32.4 billion shares were traded on the TSX-V, down more than 25 per cent from 2008. "The TSX Venture has been in a bit of a free fall for about five years," says Ian Russell at the Investment Industry Association of Canada. Another problem is that the exchange is littered with dormant companies, leaving it looking more like a graveyard than an active marketplace. "These are companies that aren't generating earnings or profit," says Mr. Russell. "They're not growing. They're just zombies that stay listed on the exchange for whatever reason. I think that creates confusion, particularly for investors." A mass delisting of these zombie companies is not part of its "revitalization" plan. The exchange instead is focusing its efforts on trying to attract more investors, diversifying its listings to be less resource-heavy and reducing administrative costs for issuers.

© 2024 Canjex Publishing Ltd. All rights reserved.