Cross-Listing

Cross-listing refers to one company listing their securities on two or more stock exchanges.

For example, a U.S. company might be listed on the New York Stock Exchange and then decide to also list their securities on the Nikkei exchange in Japan. Everyone has to comply with the rules of each country’s exchange.

Companies like to cross-list in order to increase their liquidity, now that there are more locations to buy and sell, and more time to trade the stock in different time zones. Cross-listing also helps to increase the number of investors to raise more funds, as well as to expand awareness of a company’s products and services in other parts of the world.