Update : 2020 (Updated answer as per the new version of angular material)
The below old answer worked for the OP at the time question was asked. But I observed comments on the old answer and output event, change of mat-select has been deprecated in the new version of angular material. So, the correct answer is
HTML:
<mat-form-field>
  <mat-select (selectionChange)="selectedValue($event)">
    <mat-option [value]="'GB'">Great Britain</mat-option>
    <mat-option [value]="'US'">United States</mat-option>
    <mat-option [value]="'CA'">Canada</mat-option>
  </mat-select>
</mat-form-field>
selectionChange will give us an object contains 2 properties value & source
- valuewill hold selected option value and
- To get the selected option text, you can simply call triggerValueonsourcelike below
TS:
selectedValue(event: MatSelectChange) {
  this.selectedData = {
    value: event.value,
    text: event.source.triggerValue
  };
  console.log(this.selectedData);
}
Old Answer
With normal change event, you can get the value like below
In the .html file
<mat-select placeholder="Transaction Type" (change)="selected($event)" formControlName="TransactionTypeID">
    <mat-option *ngFor="let t of transactionTypes" [value]="t.TransactionTypeID">
        {{t.TransactionType}}
    </mat-option>
</mat-select>
In the .ts file
selected(event) {
    let target = event.source.selected._element.nativeElement;
    let selectedData = {
      value: event.value,
      text: target.innerText.trim()
    };
    console.log(selectedData);
}