Description: Nasdaq is looking to buy the St. John’s based online security firm Verafin for $2.75 billion. Verafin’s security reach extends to tracking down elusive financial crime, such as money laundering. The plan is to keep the firm in Newfoundland and Labrador, with Nasdaq’s global client base offering an excellent opportunity to grow the business.
Date: November 19, 2020
Source: cbc.ca
Link: https://www.cbc.ca/news/canada/newfoundland-labrador/verafin-nasdaq-deal-1.5807866
Discussion points:
1) Did you realize that Atlantic Canadian firms were major contributors to the online world? Have you heard of the recent book Unicorn in the Woods that discusses this phenomenon?
2) What do you think causes some companies to be so innovative?
3) Page 312 in Wiley’s Understanding Financial Accounting talks of both the Nasdaq and the TSX. What is the difference between these two exchanges? Why would an organization choose to list on both?
Pushkaraj Jadhav, Su Young Kwon, Justin LeBlanc
1) Did you realize that Atlantic Canadian firms were major contributors to the online world? Have you heard of the recent book Unicorn in the Woods that discusses this phenomenon?
We did not know that Atlantic Canada had such major contributors to the online world. When thinking of major Atlantic Canadian companies we were more inclined to think of companies such as Irving or McCain but not an online security company. When it comes to the latter, we typically see such companies most often in Toronto, Montreal, Vancouver We have not heard of the book “Unicorn in the woods”.
2) What do you think causes some companies to be so innovative?
We believe that for companies to be so innovative, they should always be looking at developing new ideas, have a thorough understanding of their market and adapting to it consistently as well as having a good diversity.
3) Page 312 in Wiley’s Understanding Financial Accounting talks of both the Nasdaq and the TSX. What is the difference between these two exchanges? Why would an organization choose to list on both?
The Nasdaq is well known for having an orientation in innovation and technologies however as the stocks are growth oriented relatively volatile. The stocks on the TSX, however are less volatile and more stable than the Nasdaq. A company such as Verafin could choose to enlist in both as the Nasdaq is well tailored to the nature of their business and the growth they want to achieve, however, the TSX would offer them a stability greater than what Nasdaq could offer, hence why choose both.
Montana Branch, Sophie Austin, Drew Besco, Shashank Avindan
1) Yes, we realize that Atlantic Canadian firms are major contributors to the online world, however, we have not heard of the book Unicorn in the Woods.
2) Companies that are innovative are driven by change. They are always trying new ideas and making changes when needed. Always adapting their product(s) to fit the market they are aiming for and how best to serve the target market. Two important characteristics of innovative companies are diversity, and spotting trends when they happen.
3) The difference between Nasdaq and TSX is their markets, Nasdaq focuses on a dealer’s market where TSX is an index that tracks performance and of the companies listed on Canada’s largest stock exchange by their capitalization-weighted. Nasdaq is If an organization lists on both this can boost the stocks liquidity.