Dual listed companies are those that are listed on two separate stock exchanges, while maintaining two separate legal entities. The company must meet all the listing requirements of both exchanges in order to be dual listed.
Companies like Hewlett-Packard and Unilever (Dove and Axe Products) and COPL, for example, are dual listed companies.
“When a company's securities are listed on more than one exchange for the purpose of adding liquidity (Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price) to the shares and allowing investors greater choice in where they can trade their shares.
Dual listing is not a widely used technique, although it is thought to improve the spread between the bid and ask prices, which helps investors obtain a better price for their securities.”
Benefits to dual listing are gaining access to a larger investor pool, increased opportunity for potential mergers and acquisitions, more relevant markets, higher public profile, and greater access to capital.
A criticism of dual-listing is a lack of transparency, but 8020 Connect offers that as a solution to a new generation of global investors.
8020 Connect welcomes our newest client, $XOP/COPL: Canadian Overseas Petroleum Limited. COPL is a junior oil and gas company focused in Sub-Saharan African. Listed on LSE: COPL & TSXV: XOP. Join their Investor Group to learn more! COPL also has an investor-focused Twitter to keep investors informed.
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