What is the difference between the Exempt Market & the Private or Alternative Market?
Most people are completely unaware of what the exempt market is. In fact it is just a new term for what was in the past we referred to it as the “private” or “alternative” market and this market has been responsible for raising over $150 billion in capital for, what are most commonly, small to medium sized businesses since 2012.
So why the new terminology to confuse everyone? With all of the new regulations that came into place in September, 2010, the provincial Securities Commissions needed the official name to be put in many places throughout the process. So now we have Exempt Market Dealers that house and monitor Exempt Market investments.
Issuers in the Exempt Market have to go through these dealers to raise any capital and Exempt Market Dealing Representatives (like us) have to be registered.
So it’s not new by any stretch – it has just been officially named. So if you want to invest in a private investment opportunity that is not publicly traded on any exchanges – you have entered the Exempt Market.