Investing in the Exempt Market for Diversification

Written by editor on February 19, 2015 Categories: Finance Tags: ,

The Canadian Exempt Market is a great opportunity for people looking to diversify an existing portfolio of stocks and bonds.

Why the Exempt Market?

exempt market financial statementsBecause the Exempt Market allows investors to access a better rate of return than is typically available at banks, without necessarily exposing their portfolio to the day-to-day risks or volatility in traditional equity markets. The Exempt Market is a place where companies go to raise capital outside of the traditional bond or stock markets. Rather than go through the paperwork or expense that is typically associated with listing on a traditional equity market, companies that raise capital on the Exempt Market have to meet certain "exemptions", hence the name. Investment professionals evaluate all securities, and anyone wishing to sell these products has to be licensed as an Exempt Market Dealer. The reason why this type of investment is popular among investors wanting a diversified portfolio is because since the market exists outside of typical equity markets, they are not subject to the whim and fancy of daily crises that seem to dominate the stock and bond markets.

Rather than purchasing a stock and hoping that you can get a decent return in a few years, the Exempt Market allows you to be certain of a good rate of return for a set number of years. So do some research, and call an Exempt Market Dealer today for more information.

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