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1 company but on multiple stock markets?

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  • 26-05-2017 11:12pm
    #1
    dinneenp
    Registered Users Posts: 8,114 ✭✭✭


    Hi,
    Probably a very simple question but why does a company have listing soon multiple stock markets (massage, Swiss etc.) and any straight forward question on which to invest in?
    As an example Tesla:
    Tesla NDQ (us)
    Tesla Inc xet (eu)
    Tesla motors Inc (chf)
    Tesla swx (us)

    Thanks,
    Pa


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    #2
    wordofwarning
    Closed Accounts Posts: 697 ✭✭✭wordofwarning


    dinneenp wrote: »
    Hi,
    Probably a very simple question but why does a company have listing soon multiple stock markets (massage, Swiss etc.) and any straight forward question on which to invest in?
    As an example Tesla:
    Tesla NDQ (us)
    Tesla Inc xet (eu)
    Tesla motors Inc (chf)
    Tesla swx (us)

    Thanks,
    Pa

    Companies list on markets for various reasons. Saudi companies won't list on the US exchanges, due to 9/11 penalties. So they will list on Canada, UK etc. If you list on various exchanges, you may get into indexes and increase your potential value to shareholders. If CRH was just on the ISE, it would lose out on being rather large in the LSE which would increase its share value

    Generally due to arbitrage, the differences in prices are eliminated ie if a Swiss stock is undervalued relative to a USD stock, a computer will sell the USD stock and buy the Swiss one. Arbitrage means the price differences are generally eliminated


  • Options
    #3
    dinneenp
    Registered Users Posts: 8,114 ✭✭✭dinneenp


    wordofwarning wrote: »
    Companies list on markets for various reasons. Saudi companies won't list on the US exchanges, due to 9/11 penalties. So they will list on Canada, UK etc. If you list on various exchanges, you may get into indexes and increase your potential value to shareholders. If CRH was just on the ISE, it would lose out on being rather large in the LSE which would increase its share value

    Generally due to arbitrage, the differences in prices are eliminated ie if a Swiss stock is undervalued relative to a USD stock, a computer will sell the USD stock and buy the Swiss one. Arbitrage means the price differences are generally eliminated
    Thanks, last questions I think. Being based in Ireland what are the different tax implications for investing in each stock market? Is there any major advantage in investing in European over us?
    Pa


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    #4
    Brussels Sprout
    Registered Users Posts: 6,649 ✭✭✭Brussels Sprout


    dinneenp wrote: »
    Is there any major advantage in investing in European over us?
    Pa

    One thing to be aware of is that certain exchanges have higher transaction fees than others. For example buy shares in the ISEQ incurs more fees than buying them on the NYSE. However to buy on the NYSE you'll incur losses on having to switch from Euro to US$ in order to purchase the equity.


  • Options
    #5
    wordofwarning
    Closed Accounts Posts: 697 ✭✭✭wordofwarning


    dinneenp wrote: »
    Thanks, last questions I think. Being based in Ireland what are the different tax implications for investing in each stock market? Is there any major advantage in investing in European over us?
    Pa

    For the likes of Degiro, a transaction cost on the NYSE is tiny. I brought around €1300 worth of Apple shares and it cost me €0.53. Whereas on the DAX or the LSE, it would have been a minimum of €4+. Plus the bigger the exchange, the more liquid the trading ie you lose less on the bid-ask spread

    Buying shares on Ireland/UK stock exchanges incurs a duty of 1%. Whereas if you buy that company listed on the NYSE, there is no stamp duty


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