Why invest in the Private Market? 2022-02-27T20:23:47-07:00
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The exempt market provides investors the ability to invest directly into privately held companies. Typically composed of small and medium size enterprises (“SMEs”). These SMEs, those firms with less than 100 employees, represent over 97% of businesses within Canada*. Without the private market, the opportunity to invest in SMEs would not otherwise be available for the average investor.

Even though private market investments carry higher risks and lack liquidity – meaning they are subject to resale restrictions and are not readily convertible to cash – they may offer investors an investment opportunity.

Although private market investments are not suitable for everyone and are not necessarily more profitable than traditional investments, there may be good reasons for including them in your investment portfolio. Our team of Dealing Representatives is available to help you understand the investments, explain the risks and assess whether a private investment is suitable for your needs and goals.

*Source: https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03018.html#point1-1

The exempt market provides investors the unique ability to invest directly into privately held companies. Typically composed of small and medium size enterprises (“SMEs”). These SMEs, those firms with less than 100 employees, represent over 97% of businesses within Canada*. Without the private market, the opportunity to invest in SMEs would not otherwise be available for the average investor.

Even though private market investments carry higher risks and lack liquidity – meaning they are subject to resale restrictions and are not readily convertible to cash – they may offer investors an investment opportunity.

Although private market investments are not suitable for everyone and are not necessarily more profitable than traditional investments, there may be good reasons for including them in your investment portfolio. Our team of Dealing Representatives is available to help you understand the investments, explain the risks and assess whether a private investment is suitable for your needs and goals.

*Source: https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03018.html#point1-1

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What is an Exempt Market Dealer, or EMD?

The term Exempt Market Dealer (usually shortened to “EMD”) defines a company licensed by securities regulators to trade in or underwrite investment securities that have not been qualified by a prospectus; instead, the investments are exempt from the prospectus requirement.

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Who can invest in the Private Market?

Many investors are eligible to invest in the private market or exempt market, subject to complying with applicable investment limits and/or a certain level of annual income or assets.

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