The stock market serves as a medium and meeting point where companies buy and sell shares. A share or stock represents a single unit of a company’s ownership (equity).
Like everywhere else in the world, the Canadian stock market is a highly organized, standardized and regulated system. To participate effectively in the stock market, it is important to know the daily operational routines and cycles of the market activities. A huge part of this is identifying the opening and closing times of the market. The market does not open for 24 hours on all days of the week.
The Toronto Exchange and the Canadian Security Exchange are the key players of the Canadian Stock Market. It is keenly regulated by the Canadian Securities Administrators (CSA).
Canadian Stock Market Closing Hours
The Toronto Stock Exchange opens only on Weekdays for 6 hours 30 minutes daily.
– 9:30 AM to 4:00 PM (Eastern Standard Time GMT -05:00).
– 2:30 PM to 9:00 PM (Central Time GMT 00:00)
– 1:30 AM to 7:00 AM (Australian Time GMT +11)
Why Trade Stock?
Stock trading is important for diverse reasons.
1) Raising Capital
It provides a market for companies to raise capital required for the running of their business. A large capital base allows companies to embark on huge expansion projects and increase the scale of operation, which is expected to increase the level of profits they can generate. Capital raised in the stock market can provide much-needed liquidity for companies to survive through tough periods in the business.
2) Income for Shareholders
The stock market provides an opportunity for members of the general public to invest and earn income (dividends) from the fortunes of publicly traded companies.
Investing and trading in the stock market is an easy way for beginners to learn the art of investing and carrying out first-hand research of certain sectors and how the market responds to different events in the economic landscape.
It serves as a source of employment to the various professionals who work on and around the stock market floor, such as stock brokers, dealers etc.
5) Key Economic Indicator
Since most of the largest companies in a country usually have their stock traded on varying levels on the stock market. The volume of deals and trend of trading in the stock market can help monitor the general economic outlook of the country as a whole.
How to Trade Stock
Stock can be traded directly electronically, on exchanges, or through intermediaries called brokers. See our comprehensive article on how to trade stocks in Canada.
Stock Market Holidays in Canada
The Canadian Stock Market takes breaks on some officially declared holidays in Canada and the USA.
Canadian Official Holidays
- New Year’s Day – January 1, 2021
- Family Day – Feb 15, 2021
- Good Friday – April 2, 2021
- Victoria Day – May 24, 2021
- Canada Day – July 1, 2021
- Civic Holiday – August 2, 2021
- Labor Day – September 6, 2021
- Thanksgiving Day – October 11, 2021
- In Lieu of Christmas Day – December 27, 2021
- In Lieu of Boxing Day – December 28, 2021
United States of America (USA) Holidays
- Martin Luther King, Jr Day – January 18, 2021
- Memorial Day – May 31, 2021
- Independence Day – July 5, 2021
- Thanksgiving Day – November 25, 2021
- In Lieu of Christmas Day – December 24, 2021.