Dual Exchange Listing Information
Note: There have been many questions on various message boards on Dual Exchange Listings (i.e. TSE and NASDAQ). Not being able to find the answer on SEC or NASDAQ sites, I asked the SEC three of the most FAQ's. Below is their responses . Hope this helps.
- Tiger
Received: August 25, 1999
Re: FAQ's about Dual Exchange Listing
Thank you for your April 4, 1999, email.
(Are the shares of a company on each exchange one and the same?)
In response to your first question, when a company has shares listed on a U.S. exchange or Nasdaq and a foreign exchange, such as the Toronto Stock Exchange, the same shares sometimes trade on both markets. However, sometimes the company may have one class of shares that trade on one market and a different class of shares that trade on the foreign market. The issuer, your broker, or the securities market should be able to tell you about where a particular company's particular shares are eligible to trade.
(Does the company have to issue more shares for the second exchange?)
In response to your second question, if the company is not issuing new shares, the new market may simply trade outstanding shares. However, a company can also issue more shares. For instance, many companies maintain authorized, unissued shares. Generally, these shares can be issued, i.e., sold to the public, without a majority vote of the stockholders and without revising the corporate charter.
(How is the share price determined on each exchange?)
In response to your third question, if a corporation has identical shares trading on two markets (one domestic and one foreign) pricing should be similar. It should be noted that fluctuations in the different currencies could cause price variations.
Sincerely,
Division of Market Regulation
Securities and Exchange Commission