Legal Definitions - dual listing

Dual listing refers to the practice of a company having its shares traded on two or more different stock exchanges simultaneously. This strategy allows a company to access a wider pool of investors, potentially increase the liquidity of its shares, and enhance its global visibility.

Here are some examples illustrating dual listing:

• International Market Access: A prominent technology company based in Japan, whose shares are primarily listed on the Tokyo Stock Exchange (TSE), decides to also list its shares on the NASDAQ stock exchange in the United States. This move allows the company to attract American investors who might be more familiar with the U.S. tech market and provides easier access for them to buy and sell the company's stock without needing to trade on an overseas exchange. This is a dual listing because the company's shares are available for trading on two distinct national stock exchanges (TSE and NASDAQ).

• Regional Investor Engagement: An energy company with significant operations and a large investor base in Canada is primarily listed on the Toronto Stock Exchange (TSX). To expand its reach and facilitate investment from European institutional investors, the company also lists its shares on the London Stock Exchange (LSE). This enables investors in both North America and Europe to trade the company's stock during their respective market hours and within their local regulatory frameworks. The presence on both the TSX and LSE constitutes a dual listing.

• Post-Merger Strategy: When a large German automotive manufacturer (listed on the Frankfurt Stock Exchange - FWB) merges with a major French luxury brand (listed on Euronext Paris), the newly formed entity decides to maintain listings on both the FWB and Euronext Paris. This strategy ensures that existing shareholders from both original companies can continue to trade their shares on their familiar local exchanges, and the combined company benefits from continued access to capital markets in both Germany and France. The shares of the merged company being traded on both the FWB and Euronext Paris exemplify a dual listing.