Canada’s stock market has shrunk by a third since 2010: Fraser Institute
New data published by the Fraser Institute reveals how the Canadian market has seen reduced competition and limited opportunities for emerging businesses to scale upward.
Canada’s public stock market has been steadily hollowed out over the past decade and a half, according to new data tracked by the Fraser Institute.
Since 2010, the number of publicly listed companies in Canada has fallen by 32.7%, meaning hundreds of firms have disappeared from the country’s public markets. At the same time, the pipeline of new companies has nearly dried up. Initial public offerings (IPOs) — a key way businesses raise capital to expand, hire, and innovate — are down 94%.
The result is a market where more companies are leaving than entering. Fewer new firms are going public, while existing ones exit through mergers, privatization, or collapse. Economists describe the trend as a classic sign of a shrinking market.
What remains is increasingly concentrated. A smaller number of large firms now make up a greater share of Canada’s stock market, reducing competition and limiting opportunities for emerging businesses to scale up.
The Fraser Institute notes that this data aligns with broader economic warning signs Canadians already feel: weak business investment, stalled productivity growth, and declining competitiveness compared to other developed countries.
The period of decline overlaps almost entirely with the years Justin Trudeau set Canada’s economic direction, with Mark Carney serving as his chief economic adviser on investment, growth, climate policy, and capital allocation.
Throughout that period, the data shows no sustained recovery. IPO activity did not rebound. The number of listed companies continued to fall. Investment remained sluggish.
Now, with Carney serving as prime minister and advancing his “Green Reset” agenda, the same long-term trends remain visible.
Public stock markets are a key engine of economic growth, allowing companies to expand, create jobs, and raise wages. When those markets contract, the broader economy contracts with them.
According to the Fraser Institute’s data, that contraction has already happened — and the record shows no sign of a turnaround.
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.
Featured Stories
11:47
10:48
COMMENTS
-
Bernhard Jatzeck commented 2025-12-22 22:14:51 -0500Another question is which exchange? The TSX is the major one in this country, but there’s also the VSE in Vancouver. Many firms initially start on the latter because of their size and revenue.
The VSE is a volatile investment environment. Some stocks start with their initial public offering and, quickly, go down in price, never to be heard from again. Others can see their price yo-yo and they can be an example of “buy low, sell high”, but they can also fizzle out. (There’s a reason why they’re referred to as “penny stocks”.) Then there are those stocks that do well enough that they can eventually be listed on the TSX.
One reason for many stock failures, and their subsequent disappearance, is that shares are worth only what people are willing to pay for them. Much of that is dictated by sentiment or foolish optimism. One example of that was the infamous Bre-X. Another is that the company itself can run into difficulties, such as due to improper management or the market for their products or services turning sour.
So, it’s not entirely due to government policies that there are fewer companies traded on the stock exchange. -
Bruce Atchison commented 2025-12-22 21:32:03 -0500Company takeover might explain part of the shrinkage. I’m sure it’s socialist policies that have crushed our economy. Who’d want to invest with so many regulations and taxes in the way?
-
Bernhard Jatzeck commented 2025-12-22 21:26:18 -0500A lot has to do with company takeovers. For example, WestJet used to be traded on the TSX until Onex came along, made an offer, and, after the shareholders voted on it, it became one of its holdings. The company’s listing on the exchange was then deleted, resulting in one less stock to be traded.
