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| Postcard mailed 1911. |
To build early large-scale Canadian infrastructure, capital (money for investment) was needed. The ability to 'securitize' investments via stocks and bonds gave investors some assurance that standard corporate processes and accounting standards would give them a voice and a vote over company affairs.
Originally, securities (e.g. the Grand Trunk Railway) were sold on European markets. In fact, the Grand Trunk had local Canadian offices, but most of its corporate officers were in England. Eventually this distance undermined the safety of the money British investors put into GTR securities.
Canadian companies began to develop with their own Canadian head offices - e.g. the Canadian Pacific Railway. A complete financial services industry, including banking, securities and insurance firms, developed. The Bank of Montreal (shown below) was key in the financing of the CPR.
Formal stock exchanges in Montreal and Toronto provided rules-based markets for Canadian securities, with 'listing requirements' for the financial instruments trading there. As is always the case, investors are wise to investigate before and while they hold a company's securities.
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| Undated, unused postcard. |
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| Unused, undated postcard. |
