Vestas shares...on multiple exchanges

8

8till8

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I'm looking into buying Vestas shares, they manufacture wind turbines see www.vestas.com

However, they are traded on several German exchanges; Frankfurt, Berlin, Munich and also two others called Pink Sheet and Xetra (in dollars), all at slightly different prices.

Why is it traded on several german exchanges at different prices?
Also whats the last two...never heard of them

Ta !
 
8till8 said:
However, they are traded on several German exchanges; Frankfurt, Berlin, Munich and also two others called Pink Sheet and Xetra (in dollars), all at slightly different prices.

Also whats the last two...never heard of them
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Have you tried Google for and ?
Why is it traded on several german exchanges at different prices?
Click to expand...
Where - links please? just says that they're listed on the Copenhagen SE.
 
Thanks clubman, ready some google links but only the wikipedia stuff made sense to me.

I put Vesta into yahoo finance and it shows where its traded and the prices. Its traded in London, copenhagen, 5 german exchanges and then the others.
[broken link removed]=*
 
Different last trade prices on different exchanges are not that mysterious - it says nothing about when the last trade happened or what the current bid/offer prices are. Bear in mind that Pink Sheet OTC traded stocks are often considered to be risky investments.
 
Shares can be traded on different exchanges - obviously if the prices on one exchange get out of line with the others, for example, if the price on one exchange is lower than on the others, arbitagers will rush in to buy them on the cheap and flog them on the others, making a quick buck.

You would want to investigate the volume of shares traded by exchange - if they only trade intermittenly on an exchange, it may make it more difficult to sell them later
 
An example:

Exchange A: last trade €5
Exchange B: last trade €10

On its own this tells you little or nothing. The two trades could be hours, days, weeks, months apart and the most recent one could still be hours, days, weeks, months ago and of no relevance to the current bid/offer price.
 
This trading does occur for a good number of European and particularly German securities - Frankfurt, Berlin and Munich are Regional exchanges and have been around for a while - Xetra is the "newer" electronic exchange that is pan Germanic and for many German securities it is the most liquid. The pink sheet is an info source for the OTC market and brokers.

Just to confuse the issue even more vestas' primary quote is on the Copenhagen exchange which lists in Danish Kroner!

Why the different prices? - Many potential reasons - are you looking at live and firm bid/offers, or last traded prices, what lot size are the quotes at, different trading costs associated with the different exchanges etc etc.

Why do companies do this? Good question – it’s usually to increase their “tradability” to as wide an audience as possible – If I remember correctly the regional banks in Germany trade on the Regional Exchanges only and not on Xetra (or at least the majority of their trading is on the regional exchanges) so in order to make their stock widely available many companies list on all exchanges.

Edit - I wrote this earlier but never pasted it - I now find that others have said the same thing as I - ooops
 
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Thanks everyone, more research to be done before making any moves.

I have since found out that BOI life are offering Vestas as part of their their alternative energy fund...
 
As a rule of thumb you ought to aim for the main listing which in this case is in Denmark.

As a sanity check find out what the main holdings are in this fund and then see what the initial entry and annual charges are. If the fund is concentrated in a small number of names then it may be cheaper for you to replicate this fund by buying the underlying shares yourself.
 
8till8 said:
Thanks everyone, more research to be done before making any moves.

I have since found out that BOI life are offering Vestas as part of their their alternative energy fund...
Click to expand...

You'll probably find that Vestas is held by most alternative energy funds as it's a biggie in the wind turbine field.

Merrill Lynch/Blackrocks New Energy Fund is another example and is available from Rabodirect.
 
Greetings,

I was under the impression that we could not mention specific shares......
 
The original query is a technical one about the logistics of buying this share and how it is listed. This is not the same as discussion/speculation about the valuation of specific shares, share tips etc.
 
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