Brief Definition
Dual listed companies refer to companies that are listed on more than one stock exchange, allowing their shares to be traded in multiple markets.
Further Explanation
Dual listed companies refer to companies that are listed on more than one stock exchange, allowing their shares to be traded in multiple markets. This arrangement enables the company to tap into different pools of capital, increase liquidity, and enhance its visibility among a broader base of investors. Typically, dual listing involves adhering to the regulatory requirements of each exchange, which can provide a level of credibility and investor confidence.
Example:
An Australian mining company is listed on both the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE). This dual listing allows investors in both Australia and the UK to buy and sell the company’s shares. As a result, the company benefits from increased trading volume and access to a wider range of investors.