Same share price on AIM & ISEQ ???

dueaug

Should the price be the same for companies listed on both iseq and aim? My hubby bought shares online from Davy's in Great Western Mining but he didn't realise they were bought through the AIM. They had a 200% increase last Monday on the ISEQ but stayed the same on the AIM. Can anyone explain this in simple English please as to why this happens? Thanks

Sonnenblumen

dueaug wrote: »

Should the price be the same for companies listed on both iseq and aim? My hubby bought shares online from Davy's in Great Western Mining but he didn't realise they were bought through the AIM. They had a 200% increase last Monday on the ISEQ but stayed the same on the AIM. Can anyone explain this in simple English please as to why this happens? Thanks

Two different exchanges, two different markets. Too late to get the spades out, your hubby should have been aware when he placed his order where the shares would be purchased.

Why would one buy Irish stock on a foreign exchange?

Markx

In relation to this I'm interested to know if, in the situation where the same company is being traded on two exchanges, the price movement of the more traded share can be a possible predictor of the price movement of the less liquid one?

For example if a stock is on the LSE and ISE, then taking FX rates into account the prices should eventually be the same in an efficient market?

roro2

There is zero liquidity on the Dublin market - the last trade of any significance was last November. €285 worth traded in the last month. The bid-offer is around 100%. I'm not sure where you're seeing a 200% jump.

At least there is some trading in London, and a comparatively skinny bid-offer of 4%!

beachyboy

The price should be the same on both markets as companys who specialise in arbitage should see to that.

JohnnieA

In general, price should be roughly same in both markets, but...

Keep in mind that lots of the penny stocks can have little liquidity, and a huge difference in bid and offer prices.

e.g. on UK market, 1p bid and 2p offer. Which is equivalent to 1.2cent bid and 2.4 offer on Irish market.

Now on a given day the last Irish deal was a buy at 2.4 cent, while the last UK deal was a sell at 1p.

If on the next day on the UK market you get a 2p buy, you would see that there is a 100% increase in share price (compared to 1p of yesterday). In reality though, it's still the same price. Don't think that the value of your Irish shares doubled.

dueaug

Thanks lads, appreciate the information.