For example a company which listed in Europe but trades in US market or vice versa. Could you please provide few examples of such securities. I found that depository receipts are foreign company's stocks which are listed and trades in local exchange. So it is not exactly what I am looking for. I am new to stock market so please don't mind if I sound illogical.
Most certainly there are such a thing as dual-listed or interlisted stocks.
These are often exactly the same class of stock, but quoted on more than one exchange — and sometimes even in a different currency. Arbitrageurs can sometimes take advantage of differences in quotes and exchange rates.
Here's list of Canadian Interlisted Companies including "securities listed on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) that are also listed on an international exchange."
Some notables listed in Canada and which also trade in the U.S. on NYSE or NASDAQ include:
- The major Canadian banks, many of which have operations in the U.S. and other countries. (BMO, BNS, CM, RY, TD).
- BlackBerry Limited (BB).
- Celestica Inc. (CLS)
- Open Text Corporation (OTEX).
- Shopify Inc. (SHOP).
- Thomson Reuters Corporation (TRI).
An American depositary receipt (ADR) is a security that represents securities of a non-U.S. company that trades on U.S. financial markets.
For example, some well known ADRs from the United Kingdom include:
BP, Prudential, Royal Dutch Shell, Unilever, Barclays Bank, GlaxoSmithKline
Sure. In different ways.
Ever heard of microsoft? Well, I assume you know how to find the US version of them ;)
They trade in Frankfurt, Germany
Many Chinese companies trade on American exchanges most famous example Alibaba. There are also Brazilian banks that are listed in the US like Itau.
You will find many examples in the US because the US is a massive capital market, lots of money flowing there.
This is actually a technically and legally complex problem. There are companies that list and trade on multiple exchanges. But you need to understand what 'list' and 'trade' mean, legally, in each country and on each exchange.
One example that has come up is the UK bank, Barclays. Technically, it is listed and traded on the London Stock Exchange (LSE). But, in the U.S. there is an ADR (BCS). Since BCS is a trust or similar structure that holds shares of Barclays PLC in amounts matched to the investment, it gives you the same outcome.
I don't recall if BARC is traded, for example, on EuroNext - which is the more pan-European exchange.
'Listing', 'Trading', 'Settling' and -most important legally - 'Registering' - are, indeed, complex legal issues that vary by country or trade block.
Do a web search on UTP (Unlisted Trading Privileges) to see how complex this issue is even inside a large country (the U.S.).