Definition
Dual Listing
Dual listing is when a company's shares are listed and traded on two or more stock exchanges, often in different countries, to widen its investor base.
A dual-listed company trades on multiple exchanges, for example a home listing plus an overseas one, giving access to different pools of capital and longer trading hours across time zones.
India has been working to allow direct listing of Indian companies on foreign exchanges, notably at GIFT City's international exchanges, which would let firms raise foreign capital more directly than through ADRs or GDRs. Price differences across listings are arbitraged toward parity adjusted for currency.
Related terms
- Cross RateA cross rate is the exchange rate between two currencies derived through a common third currency (usually the US dollar) rather than quoted directly.
- American Depositary Receipt (ADR)An ADR is a US-listed certificate representing shares of a foreign company, letting Americans trade overseas firms in dollars on US exchanges.
- Foreign ListingA foreign listing is when a company lists its shares on a stock exchange outside its home country to access overseas capital, prestige and a broader investor base.
- GIFT City IFSCGIFT City IFSC is India's International Financial Services Centre in Gujarat, a special zone offering offshore-style financial services in foreign currency with light regulation and tax benefits.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.