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Gold/Mining/Energy : BET YOUR ASSAY - Mining Terms Explained -- Ignore unavailable to you. Want to Upgrade?

To: James R. who wrote (346)	3/3/1998 10:43:00 AM
From: Walt	Read Replies (2) \| Respond to of 463

Im not sure which list you are refering to, the overall list of companies listed or those that make the TSE 300 etc. there are some mutual funds etc that pick stcks from the TSE 300 so getting on that list means your stock is eligible for some mutual fund bying etc which is a good thing and gives the companies on the list a higher profile. regards Walt

To: James R. who wrote (346)	3/3/1998 7:29:00 PM
From: Ray Hughes	Read Replies (1) \| Respond to of 463

There are three benefits a company derives from being newly TSE 300 listed: 1. Index Funds MUST buy the appropriate weighting of the newly listed company and sell the companies dropped from 300 Index. So, getting bought beats getting sold. 2. TSE 300 implies growth. 300 stocks are the 300 largest Canadian companies ranked according to market capitalization. Getting on the 300 spotlights a company as a growth vehicle. 3. TSE 300 listing implies quality because this is Canada's premier listing. This may be a false notion, however, because there are no new "quality criteria" that a company must meet. Market cap may suddenly rise dramatically owing to totally external events. This was true recently for a metal producer as the price of its primary product shot up. Same small company as before but its share price rose 50% putting it on the TSE 300. Subsequently the metal price dropped, the company's market cap fell back and it would not have continued to qualify for 300 Index. Luckily, however, the metal price soared again ...! hope this helps Ray Hughes