How does a dual listing work?
A company can list its shares on more than one exchange, which is referred to as dual-listing. In order to be listed, a stock must meet all of the exchange’s listing requirements and pay for all associated fees. A company might list its shares on several exchanges to boost the stock’s liquidity.
What is the difference between a cross listing and a dual listing?
Cross-listing (or multi-listing, or interlisting) of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange. Dual listed companies, where two distinct companies (with separate stocks listed on different exchanges) function as one company.
Why would a company do a secondary offering?
In some cases, a company may perform a secondary offering—called a follow-on offering. This need may arise to raise capital to finance its debt, make acquisitions, or fund its research and development (R&D) pipeline.
Why does a company do a secondary offering?
Companies use secondary offerings for various reasons, to fund new projects, complete acquisitions or meet operating expenses. Shareholders and corporations sell secondary offerings on the secondary market, otherwise known as the stock market, i.e., the New York Stock Exchange and the NASDAQ.
What are reasons for a dual listing?
Access to a larger capital base One of the reasons a company may resort to dual listing is the opportunity to raise more capital.
What is a dual listing?
A dual listing is a situation in which the securities of a given company are listed on more than one exchange.
What is dual listed?
Summary When a company’s shares are listed on more than one exchange, it is said to be dual listed. Dual listing allows a company to increase its access to capital and makes its shares more liquid. The price of shares of a dual-listed company on two different exchanges should be exactly the same after accounting for the exchange rate.
What is dual listing stock?
Dual Listing – a dual listing is when a security is traded on more then one exchange. Securities have to be registered, and usually are sold on one exchange however in some cases a Dual Listing I used. A dual listed stock is not convertible into each other, like a cross listed stock.