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Where to buy dual-listed equity?

  • 02-08-2010 2:07pm
    #1
    ionapaul
    Registered Users, Registered Users 2 Posts: 5,307 ✭✭✭


    I'm thinking of buying shares in a company that is dual-listed on two exchanges (in this case, London and Amsterdam, with ADRs in both available on the NYSE) - is there any advantage or disadvantage over buying in any of these exchanges? I was thinking of going for Amsterdam just to avoid the 1% stamp duty that would be levied in London.


Comments

  • #2
    hmmm
    Registered Users, Registered Users 2 Posts: 11,205 ✭✭✭✭hmmm


    ionapaul wrote: »
    I'm thinking of buying shares in a company that is dual-listed on two exchanges (in this case, London and Amsterdam, with ADRs in both available on the NYSE) - is there any advantage or disadvantage over buying in any of these exchanges? I was thinking of going for Amsterdam just to avoid the 1% stamp duty that would be levied in London.
    ADRs often don't have the same rights as the European listings, e.g. they may not be allowed participate in rights offerings. There may also be tax differences between US & Euro listings. Your broker might also have different fees depending on where you buy. You might lose out a fraction on currency conversion in buying and selling.


  • #3
    Tiesto
    Closed Accounts Posts: 1,509 ✭✭✭Tiesto


    ionapaul wrote: »
    I'm thinking of buying shares in a company that is dual-listed on two exchanges (in this case, London and Amsterdam, with ADRs in both available on the NYSE) - is there any advantage or disadvantage over buying in any of these exchanges? I was thinking of going for Amsterdam just to avoid the 1% stamp duty that would be levied in London.

    Purchasing in one exchange over another wont avoid Stamp.
    Doesnt matter where it trades. Take Xstrata for example. Its listed in London and Amsterdam. You will pay 0.5% Stamp regardless where you purchase.
    (GB Stocks : 0.5%) (Irish Stocks 1%)

    On a side note, ETF's are Stamp exempt..


  • #4
    josey_whale
    Registered Users, Registered Users 2 Posts: 284 ✭✭josey_whale


    ionapaul wrote: »
    I'm thinking of buying shares in a company that is dual-listed on two exchanges (in this case, London and Amsterdam, with ADRs in both available on the NYSE) - is there any advantage or disadvantage over buying in any of these exchanges? I was thinking of going for Amsterdam just to avoid the 1% stamp duty that would be levied in London.

    Don't forget currency fluctuations!


  • #5
    ionapaul
    Registered Users, Registered Users 2 Posts: 5,307 ✭✭✭ionapaul


    Feck it, I was actually going to buy Unilever but have put that plan on hold and just bought a ETF that tracks dividend-paying equities (Ticker: XGSD:Frankfurt), it has a yield of over 6% which is pretty tasty.


  • #6
    Blackjack
    Registered Users, Registered Users 2 Posts: 3,628 ✭✭✭Blackjack


    Tiesto wrote: »
    Purchasing in one exchange over another wont avoid Stamp.
    Doesnt matter where it trades. Take Xstrata for example. Its listed in London and Amsterdam. You will pay 0.5% Stamp regardless where you purchase.
    (GB Stocks : 0.5%) (Irish Stocks 1%)

    On a side note, ETF's are Stamp exempt..

    theres no stamp in Amsterdam, Stamp pretty much only applies to the UK and Ireland.
    Certain other countries apply it in specific circumstances, the Netherlands is not one of them.


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  • #7
    Reyman
    Registered Users, Registered Users 2 Posts: 1,297 ✭✭✭Reyman


    ionapaul wrote: »
    Feck it, I was actually going to buy Unilever but have put that plan on hold and just bought a ETF that tracks dividend-paying equities (Ticker: XGSD:Frankfurt), it has a yield of over 6% which is pretty tasty.

    Don't forget you won't get your €1290 (€2580) relief on CGT when you sell ETFs!


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