What is a dual list?

Dual statement is a situation where the securities of the company are listed on more than one stock exchange. For example, securities can be listed on the New York Stock Exchange and Nasdaq. The reason for the double list is usually to provide investors with more opportunities in shares trading, which in turn can increase the liquidity of these shares.

with access to a dual list is considered to be a primary list on one exchange, while the other list is considered secondary. This does not necessarily mean that the extracts are not the same, simply that the company is likely to issue new shares on one stock exchange in front of the other. Once stocks are on the market, they can be easily traded on both stock exchange.

6ACIE. For companies trying to make their stocks available on more than one stock exchange, demand on each market may have a certain impact on activity on the second market, resulting in an increase in unit value. Investors also have multiple options Tby the purchase or sales of shares. If there is a slight difference between the two markets in the price, this means that the seller can realize more profit by trading on one exchange or shopping actions for slightly lower rates on a particular stock exchange. The events of this type are usually short -term, which means that investors must act quickly to use this type of disparity.

One way to organize a dual extract is the establishment of two holding companies that manage the issue of shares of each stock exchange. This approach may be particularly useful in situations where two companies decide to merge into one entity, and still decide to operate publicly under both names. It is also useful when one company acquires another company and continues to act as a completely owned subsidiary of the new owner.

Dual statement sometimes occurs when the company begins to create international presence by operating facilities in foreign countries. If this happens, jE sometimes be advantageous on international stock exchanges and domestic exchanges. Assuming that the Company meets the qualification of the Stock -related list, there is usually no problem with the company's shares on these markets.