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I bought a share on Exchange A with my platform on the usual terms: legal ownership is the platform's and beneficial ownership mine. I've now been told by them that Exchange A is delisting the security.

They tell me that to avoid a serious risk of being unable to sell the share I must now sell it on Exchange A and buy it again on Exchange B, which continues to list the share.

This seems to me to unnecessarily incur dealing costs. What is to prevent someone from buying a share on one exchange and simply selling it in due course on another?

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    I'd suggest adding a country tag. Your 'ownership' explanation is not something I'm (in US) familiar with. Jan 12 '20 at 12:29
  • I believe the question means that the broker (platform) is registered as the share owner with the company or exchange, but by contract he is the actual (beneficial) owner and entitled to all the benefits of ownership. Jan 12 '20 at 18:34
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    @JTP-ApologisetoMonica I think the US term for this kind of ownership is in street name.
    – TripeHound
    Jan 13 '20 at 8:58
  • DJClayworth is correct - this is common UK practice. Jan 13 '20 at 13:08
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    I would be interested to know which provider recommended you this and on which stock ?
    – DumbCoder
    Jan 13 '20 at 17:01
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What is to prevent someone from buying a share on one exchange and simply selling it in due course on another?

Costs. This include transaction costs, forex costs if in different countries, costs of maintaining a brokerage relationship with multiple entities, legal restrictions, timing if the stock exchanges are in different time zones etc.

People assume they can profit from arbitrage opportunities because of such but it is never really worth the costs involved. And the profit will be so minimal that it doesn't make it worth the effort.

This seems to me to unnecessarily incur dealing costs.

As for your case it would be advisable for you to proceed as the exchange advises. Chances are you might lose all your investment if there aren't any buyers for them, when you want to sell them.

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    This does not make sense. The question is not concerned with doing arbitrage but whether it's possible at all to sell shares bought on one exchange on another. And your second part directly contradicts the first and is flat out wrong unless you're hinting at the possibility that the stock might be delisted everywhere. If so, you should really say so explicitly. Jan 13 '20 at 12:38
  • @MichaelBorgwardt I would suggest you read the question properly before downvoting. whether it's possible at all to sell shares bought on one exchange on another Where did the OP mention that ? Unless otherwise explicitly stated I will not assume anything. And I seriously don't think you understood what I posted.
    – DumbCoder
    Jan 13 '20 at 12:42
  • I would suggest you read the question properly before answering. You are assuming a lot, and your assumptions are wrong. Jan 13 '20 at 12:53
  • @MichaelBorgwardt I think you would be better advised to read the question and the body of the question first with your eyes open. Good luck with that attitude.
    – DumbCoder
    Jan 13 '20 at 12:58
  • Talking to yourself now? Jan 13 '20 at 13:17
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What is to prevent someone from buying a share on one exchange and simply selling it in due course on another?

In principle, nothing.

In practice, it might be simply that your brokers internal systems do not support it, possibly because they use different custodian banks for different exchanges and don't have procedures in place to have a clearing house carry out transactions between them.

To understand what these terms mean, this article offers a pretty good simplified explanation.

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