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The national registration search contains the names of all individuals and firms who are registered to sell securities in Canada, with the exception of those registered solely with the Ontario Securities Commision (OSC).

ASC ExternalSite > Investors > Investor Resources > You ASC'd Blog > Posts > Buying stocks listed on an ’unconventional’ exchange? Better check first

September 05
Buying stocks listed on an ’unconventional’ exchange? Better check first

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.

  • Regardless of whether your investments are on an exchange or not, be sure to follow these tips to better protect your money:
  • Know that it is illegal for a person or company to suggest that an unlisted security they are selling will be listed on an exchange or even that an application has or will be made to list the security on an exchange without prior approvals (refer to Section 92 (3) of the Act).
  • Be aware that not all investments listed on an exchange have the same risk profile. All investments come with some level of risk. Check the background of the company and individuals offering the securities before you invest.
  • Read the legal notices and disclaimers on any exchange where your security is listed. You may not be comfortable with the terms and conditions.
  • Know your risk tolerance level. If an investment seems too risky for you, think twice. It is always a good idea to get a second opinion on any investment opportunity. Consult with someone with business knowledge such as a lawyer, accountant or financial advisor who is not involved in the deal.

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.

 

Blogger

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: