What is the main function of the Canadian Securities Exchange (CSE)?

• A. To only facilitate trades for established companies
• B. To serve as an alternative trading system for institutions
• C. To provide a trading platform for both emerging and established companies
• D. To regulate derivatives trading in Canada

Answer: (C)

The Canadian Securities Exchange (CSE) primarily functions as a trading platform that welcomes both emerging companies and established firms. This dual focus allows smaller or newer companies to gain access to capital markets while also providing a venue for larger, more established firms to trade their securities. The CSE is particularly known for its support of smaller issuers and growth-oriented businesses, making it an essential part of the Canadian capital markets landscape.

This inclusive approach distinguishes the CSE from other exchanges that may focus primarily on larger, more established entities. By offering a platform suited for various stages of company development, the CSE promotes financial growth and innovation within the market. This also provides investors with the opportunity to engage with a diverse range of investment opportunities, from high-risk, high-reward emerging firms to steady, established companies.