Goldcar, the following is an excerpt of my post of january 6th.

Please feel free to read it.

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Benefits:

A company approved for listing on the TSX joins a class of issuers that includes many large and reputable domestic and international companies. As the only Canadian exchange for senior issuers, listing on the TSX signifies that a company has met recognized minimum standards and imparts additional confidence for investors and other market participants. The TSX provides the best access to capital of all the Canadian exchanges and financial media and analysts give considerable attention to TSX listed companies, often resulting in an ongoing public interest in the issuer's financial performance.

Many companies who graduate to the TSX realize a step-up in their share price due, in part, to the increased credibility and public exposure of a TSX-listed company. An observation of 34 companies that graduated between October 14, 2005 and August 10, 2006, found that almost sixty per cent of the companies had an average share price over the thirty trading days post-graduation that was higher than the thirty trading days preceding graduation. On average, the share price of all 34 issuers went up over three per cent in that time frame, with four companies showing an increase of over 25 per cent. Although many companies attain an increase in share value, graduation is just one of many factors which may influence this outcome.

A company that realizes an increase in share value will find itself in a much more favourable position to engage in M&A transactions. If trading value is well above book value, shareholders of the listed company can sell at a premium. Shareholders will also experience less adverse dilutive effects where the company uses share consideration in their transactions. Even where share price is unaffected by graduation, the added liquidity and other benefits inherent in a TSX-listed stock makes the company's shares more attractive to asset owners and shareholders of a target corporation.

Some other benefits of graduating to the TSX include the asset value of the listing itself and the TSX requirement that a market maker be assigned to each listed company. Market makers take positions in a listed stock (by making firm bids or offers) in order to enhance liquidity and smooth out undue price distortions. For example, market makers must buy stock when trading volumes fall below certain thresholds.