Even though there are thousands of corporations on the Canadian stock market today, some industries are more popular than others. Here's an overview of some of them:
Precious Metals and Mining Companies
The mining sector is one of Canada's main industries. As Canada has relatively large deposits of metals such as gold, silver and copper, it's normal that there would be many companies which are seeking to profit from Canada's vast resources in metals. Mining companies in which you can invest a range from junior companies which have just entered the market, to large mining companies which have been in operation for over a century. While the newer entrants to the market may offer some attractive growth potential, it should be known that they are viewed as being a lot more risky than the more established corporations.
Oil, Gas and Other Energy Companies
In addition to having metals, Canada also has large deposits of oil and natural gas. Therefore, the energy sector is also one that is very popular in Canada, where there are hundreds of companies that seek to extract oil and natural gas from the soil. Investors need to be aware of the fact that the performance of these stocks will often have a relationship with the prices of oil on the global markets and will fluctuate accordingly.
For investors who are more conscious of the environment, there are also companies on the Canadian stock market which operate in the alternative energy sectors. These are firms that produce solutions for alternative energies that don't rely on fossil fuels, such as wind energy and solar energy. There are many new entrants in the alternative energy market as many countries, including Canada, are seeking to use more “clean” energy. Once again, however, investing in these new entrants to the alternative energy market is not without risk, as there have been a few corporations that have failed in the past.