LIQUIDITY, CAPITAL RESOURCES AND DEFERRED REVENUE (continued)

Shareholders’ Equity 

• Shareholders’ Equity increased primarily due to net income of $103.4 million, offset by dividend payments in 2005 of $61.2 million. Net income from NGX was $4.2 million in 2005 and $1.4 million in 2004.
  
• As a result of legislation passed by the Ontario Legislature on December 14, 1999, effective April 3, 2000, Toronto Stock Exchange continued from a not-for-profit corporation to a for-profit taxable business corporation, The Toronto Stock Exchange Inc. (subsequently renamed TSX Inc.). At the time of the continuance, any accumulated excess in revenue over expenses was internally restricted as it was not intended that any part of the surplus be distributed to shareholders. As at December 31, 2005, this amount was $63.4 million compared with $64.5 million at December 31, 2004. 
  
• At both December 31, 2005 and February 1, 2006, there were 68,093,018 common shares issued and outstanding. There were 5,600,000 common shares originally reserved for issuance under a share option plan of which 312,436 common shares were issued on the exercise of stock options in 2005. At December 31, 2005 there were 1,248,462 options outstanding and at February 1, 2006, there were 1,237,238 options outstanding. 
  
  

Cash Flows from Operating Activities 

Cash Flows Used in Investing Activities

^{*See discussion under the heading Non-GAAP Financial Measures.}