An Introduction to TSXV Life Science Stocks

Generally, the TSXV is known for metals and mining—that is, the opportunities it offers resource investors. Nevertheless, there is a life science market here as well, that could provide big opportunities to investors ready to do some research and get to know the technology driving these companies.
Originally born out of a merger between the stock exchanges in Vancouver and Alberta in the 1990’s, the TSX Venture Exchange, or TSXV, is the Canadian small or micro cap market—similar to over the counter exchanges in the US. It’s designed for small market companies.
Companies that trade on the TSXV tend to be cheaper and usually with plenty of penny stocks. Should an investor make the right selection, the payoff can be huge.

Risks of trading on the TSXV

The TSXV is well-regulated and its listings are transparent. Nevertheless, companies are not required to disclose as much information as those in the TSX or NYSE, and so the exchange is best-suited for seasoned investors who have existing knowledge of an industry.
Penny stocks are highly speculative with Investopedia even calling them more of a gamble than a legitimate investment. and while it’s possible to gain big, investors should be wary of big loses.
The life science market is already a risky one, with many companies banking on the success of trials that can take years and after much work could still prove a particular drug or device ineffective. There is never any guarantee that a drug candidate will be approved or that a medical device will stay on the shelves. With smaller companies, like those listed on the TSXV, investors are less insulated when a product fails in clinical trials.
Should you decide that the TSXV is right for you, the Investing News Network (INN) has compiled a list of some medical device, genetics, pharmaceutical and biotech stocks currently trading on this exchange—as well as their area of focus.