The exempt market provides investors the ability to invest directly into local, privately held companies while providing capital to support their growth. Small and medium size enterprises (“SMEs”), with less than 100 employees, represent over 98% of businesses within Canada and the majority of these SMEs requested external sources of financing*. Investing in the exempt market provides one source of financing for privately held companies that allows investors to support these local businesses.
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 while providing necessary sources of financing to local private businesses.
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.statcan.gc.ca/o1/en/plus/1253-small-and-medium-businesses-driving-large-sized-economy
The exempt market provides investors the ability to invest directly into local, privately held companies while providing capital to support their growth. Small and medium size enterprises (“SMEs”), with less than 100 employees, represent over 98% of businesses within Canada and the majority of these SMEs requested external sources of financing*. Investing in the exempt market provides one source of financing for privately held companies that allows investors to support these local businesses.
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 while providing necessary sources of financing to local private businesses.
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.statcan.gc.ca/o1/en/plus/1253-small-and-medium-businesses-driving-large-sized-economy
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What is an Exempt Market Dealer, or EMD?
The term Exempt Market Dealer (usually shortened to “EMD”), defines a company registered with 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.
