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What is the TSX Venture Exchange (TSX-V)?

The TSX Venture Exchange serves as a public venture capital marketplace for emerging companies, particularly in Canada’s natural resource and technology sectors. Always consult with an independent and certified investment advisor before making an investment.

How to Invest in TSX Venture Exchange Stocks

Foreign investors can easily invest in the Toronto Stock Exchange or another exchange in Canada through a broker or through private placements. Catherine Kee, a spokeswoman for the Toronto Stock Exchange, told Resource Investing News that about 40 percent of the volume traded on the TSX comes from outside of Canada.

Finding a broker is easy, Kee said, pointing out that investors can contact firms on Toronto Stock Exchange Participating Organizations and TSX Venture Exchange Member Firms from the homepage of the Toronto Stock Exchange. More than 1,500 companies are listed on the Toronto Stock Exchange and more than 2,000 on the Toronto Stock Exchange Venture exchange.

A broker handles an investor’s money, reviews and creates portfolios and buys and sells shares on the investor’s behalf. Brokers can help those seeking to invest in Canada monitor the market and come up with investment strategies. In Canada, brokers much be must have passed the Canadian Securities Course administered by the Canadian Securities Institute to make investment decisions on the behalf of individual investors.

Doug Casey, Chairman of Casey Research, said 60 percent of all the mining companies in the world are listed on Toronto Stock Exchanges. “Canada is the world’s largest exporter of minerals. That resource focus has made the Toronto Stock Exchange (TSX) and Toronto Venture Exchange (TSXV) meccas for the junior mining industry,” Casey added.

Why to invest in the TSX

Another reason Casey offers for investing in Canadian equities is that investors need to diversify out of the US dollar. “From 2002 to late 2010, the Canadian dollar gained 58 percent against the US dollar. By purchasing your stocks directly on the Canadian exchanges, (and thus in the Canadian dollar), your investments are not only protected against the US dollar losing value, they will appreciate with every tick down of the greenback. We think this is not only a basic tenet of proper diversification, but also a wise one in the current investment environment.”

What to look out for

Casey advises investors to hire a full service broker even though trading via the Internet has made it easy to buy shares anywhere in the world. But he cautions: “You should never pay more than 3 percent to a full-service broker. And you should strive to pay no more than 1 percent for online purchases, which isn’t always possible, but that should be the goal.”

Another word of caution from Casey is regarding taxes in your own country if you invest in Canadian equities. “Although it’s not always the case, your holdings of a foreign stock may make you subject to US tax if the compa­ny is considered to be a passive foreign investment company (PFIC).” A foreign firm is considered a PFIC if either 75 percent or more of the company’s gross income is passive income or 50 percent or more of the company’s assets produce — or could produce — passive income, or are assets that produce no income. He adds that tax reporting requirements “are neither onerous nor complex, but they should not be ignored. Be sure to discuss the subject with your accountant or advisor.”

Canada’s stock markets are relatively easy to access for Canadian and U.S. investors given the countries’ close ties with each other. Moreover, Canada and the U.S. have tax treaties that can avoid problems commonly associated with international investing, such as double-taxation.

Canadian investors can purchase stocks traded on the TSX-V directly using brokerage and self-directed brokerage accounts. U.S. investors can purchase stocks traded on the TSX-V directly using brokerage accounts that support such foreign trades. If you do not have a brokerage account call your bank and ask to set up a brokerage account and explain you are looking to purchase a company stock on an exchange.

In your brokerage account, you will be able to find VanadiumCorp using the ticker symbol VRB. Make sure that the company name accompanying the ticker symbol says VanadiumCorp Resource Inc.

If you simply want to follow the VanadiumCorp’s stock activity to see how it performs you can do that on many websites including Stockwatch, Google Finance, TMX Money and Globe Investor

What if I’m not Canadian or American?

This may vary from country to country but start with contacting your bank and discussing with the brokerage team is a start. There are bank brokerages and independent brokerages in most countries and consulting an investment professional is always best practice. Always consult with an independent and certified investment advisor before making an investment.

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