Cross listing of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange. In most cases, the ADR is convertible back into the original instrument but needs to go through a process of conversion. However, many companies cross-list, in which the stock is technically fungible between exchanges. Royal Dutch Shell, IBM, and Siemens are all examples where the same issue is traded in multiple markets "multi-listed". Prices are subject to local market conditions, as well as FX fluctuations and are not kept in perfect parity between markets. While 'technically' fungible, these separate primary listings they would all be considered 'primary' listings are subject to re-registration which creates significant settlement risk if an investor wants to buy on one exchange and sell in another especially where the currencies differ. Also, this is distinct from being 'admitted for trading' where a foreign share is accessible in a different market through an exchange convention and not actually registered within that different market.
Today's investing opportunities are not bound by geography. If you're intrigued by the reports of emerging economies and booming growth in many nations around the world, you may well want to invest in some of them. You just have to know how to get started. There are six ways to invest in foreign growth that are available to any investor:. For most investors, the main points of investing in foreign stocks are to diversify their portfolios and to take a stake in the growth of other economies.
Asia is arguably the largest engine of economic growth in the world today, and many are looking to invest in its rise through the stock market. Of course, Asia is a very large and diverse continent with vast investment opportunities, but there are several guidelines to follow. You will have to evaluate the opportunities in each country individually, or purchase stock funds that invest heavily in Asian companies. You must be aware that information on foreign companies may not be available, reliable, or timely.