It’s important to understand the different types of exchanges available to investors, because there are many others beyond the more familiar TSX and NYSE. Each exchange is unique and presents varying levels of risk. Don’t be fooled into thinking that just because a company is listed on an exchange that the investments being offered, or even the company itself, are risk-free.
There are some exchanges that the ASC does not recognize - perhaps the exchange does not meet our requirements to be recognized (as outlined in National Instrument 23-101), or perhaps those who manage the exchange may have chosen not to apply for recognition. One example of an unrecognized exchange is the OTCBB (Over-The-Counter Bulletin Board) which operates out of the United States. For more information on this, you can read up on the list of exchanges that are recognized by the ASC.
The next time you are presented with an investment where the stock is listed on an obscure or non-mainstream exchange, be a wise investor and take the time to check first.
Hello, Don Rodgers here and I am the Public Information Officer for the Alberta Securities Commission (ASC). Before coming to work for the ASC, I was a trader and taught technical analysis. I also wrote for two on-line investment websites. As such, I have a great deal of interest in the securities industry and a desire to help answer questions which you may have.
Here are some links I think you’ll find helpful: