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As far as I have understood, stocks of a company are traded on different stock exchanges all over the world. So lets say stock "Apple Inc" is not traded on New Yorks stock exchange, because it is closed now, then it is traded at european stock exchanges, and if not there at asian stock exchanges, hence nonstop.

So why is there no graph for a specific stock of continuous price action?

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  • @chepner Looks like a good answer to me - you should add it in as such and remove the comment. Commented Apr 16, 2020 at 14:35
  • Will do; I wasn't really sure if it was correct.
    – chepner
    Commented Apr 16, 2020 at 14:39

2 Answers 2

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A company can have:

  • Multiple Classes of Securities,
  • Multiple Listings; and
  • Depository Receipts

Multiple Classes

For example Berkshire Hathaway has two kinds of shares (Class A and Class B). These are traded on exchanges but they offer the holder different rights and trade at different prices.

Multiple Listings

Sometimes the same security may be listed on multiple exchanges (i.e. it has the same ISIN number). However the securities will have a different currency. It may be possible to create a chart comparing the two, but it would have to account for currency fluctuations. As foreign currency is traded OTC there is no official exchange rate at a given point in time. Your foreign exchange dealer may have different prices than another.

Depository Receipts

Another way to list a security of a foreign company on an exchange is to buy a pool of the foreign company's shares, then sell a receipt for those shares on the local exchange. These are sometimes called ADRs meaning Automated Depository Receipts or American Depository Receipts. The holder of the ADR can usually exchange the receipts for shares of the foreign company for a fee.

The true test of the equivalence of these different listings is to see if there is a way to inexpensively convert from one to another and back again.

It is possible to aggregate the data to draw a chart showing the prices in different markets but one has to factor in the exchange rates and the fact that some exchanges may be less liquid and/or have higher transaction costs. All of these things will add additional complexity and noise, where the benefit does not seem particularly clear. The main reason for multiple listings is to cater for the local market.

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Shares listed on different exchanges aren't really comparable. Both represent ownership of the same company, but are two distinct "classes" of stock.

For example, BP is listed on both the NYSE and the London Stock Exchange. In New York, there are 3.3 billion shares that trade at ~$21. In London, on the other hand, there are 20 billion shares outstanding, trading at ~£289 ($348). You cannot buy a share on one exchange and sell it on the other.


Disclaimer: I have no idea how these multi-exchange stocks work. I only note one example where a company trades on two exchanges, with the stock price clearly reflecting a distinction between the two.

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  • Interesting. So far I understand that there are different classes of stocks of the same company which can't be traded on other stock exchanges. I was given the example of a car company that sells cars in different countries. It makes sense that at different "shops" there are different prices. But is it safe to assume that the prices should only slightly differ in price? If yes, there could exist a graph depicting cumulated price action of different stock exchanges...some kind of average Commented Apr 16, 2020 at 15:06
  • I thought of that. If anything, I would think the NYSE shares would be the more expensive, since there are fewer of them. There must be some difference in voting rights, or dividends, or something. At this point, I'm just waiting for someone who knows what they are talking about to downvote/correct me. But from a purely financial perspective, I don't think it makes any more sense to compare prices between the two than it would to compare prices with a stock from an entirely separate company.
    – chepner
    Commented Apr 16, 2020 at 15:26
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    i wonder myself. with BP stock it's confusing, e.g. wiki says NYSE trades "American depository shares (ADS). One ADS represents six ordinary shares", so should it be more expensive than in London? Commented Apr 16, 2020 at 17:30

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