What Is Some Information on the Canadian Stock Market Index?


Quick Answer

The S&P/TSX Composite Index is the leading index for the Canadian stock market, according to S&P Dow Jones Indices. S&P Dow Jones Indices, which oversees U.S. indices such as the S&P 500, manages and calculates the S&P/TSX Composite using real-time and historical data provided by the Toronto Stock Exchange.

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Full Answer

The index launched as the TSE 300 Composite Index in 1977 with 300 companies included in its calculations, explains RateSupermarket.ca. In 2002, Standard & Poors acquired the index and amended its rules. S&P reduced the number of industry sectors covered by the index from 14 to 10 and adjusted the composition of the index from a fixed set of 300 companies to a variable number. In fact, the number of companies in the index often fluctuates. For example, it covered 204 companies in 2009 and 256 companies in 2011.

As of 2015, the S&P/TSX Composite Index covers 242 large Canadian companies that have market capitalizations ranging from 284 million Canadian dollars ($209 million) to over CA$113 billion ($83 billion), notes S&P Dow Jones Indices. The index's largest industries are financials, energy, materials, industrials and consumer discretionary. The three largest companies in the index are each financial institutions: Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia Halifax.

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