Irish Stock Ex Vs London stock ex

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chefcorm

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Hi i have a question i need answering and im wondering if someone can help me..........Why does a company trade on 2 stock markets, like the irish and the london stock exchange? I bought shares from an irish company and they trade on the LSE and the ISE, there value on the irish is 0.04cent and on the london SE is £3.95. Why is there such a huge difference in value. Just learning about stocks and shares and trying something new. Your help would be appreciated....
 
Well there are a number of reasons why companies seek dual listings..Sometimes as companies grow, they look to be placed in larger stockmarkets to increase their 'presence' and so attract more capital..Personally, I tend to trade alot of Irish stocks on the London Stock Exchange (LSE) instead of the here in Dublin. I find dealing on the Dublin market is still pretty much in the stone age. Plus the costs are generally lower trading on the LSE..So take for example Bank of Ireland. You can trade the stock on the London market..the price on both listings will track each other..Both are quoted in euro..It's a no brainer..I imagine alot of people still think the only way to buy an Irish stock is to do it on the Irish stock exchange at exorbitant rates..
As for providence resources..I am sure the price is nearly identical for both listings. You may be reading the quote wrong..In London, it may appear as 4.50..Which is 4 and 1/2c ..in Dublin it could read .045..which is the Irish Stock exchanges way of saying 4 and 1/2 c..
Finally remember that there are different closing times in both markets..london closes at 430 and dublin (i believe) 530ish..so a price discrepancy may appear after london closes..but when london opens the following morning..the gap will close and both should trade in line again..I dont trade providence resources myself..so maybe someone correct me if im wrong on this :)
 
Thanks for your help bosra. Would you have any tips where is good to invest your money now.
 
chefcorm, I suppose it all depends on your timeframe and risk appetite as where is best for you to invest. Personally, I rather trade the markets than say buy and hold. I would subscribe to the same view as that of JP Morgan analyst Mike Krauss. They argue the market comes back from here through September..Then pushs higher towards year end. How far does the SP500 come back is anyones guess..it might be a very shallow dip..The market has been resilient and buyers have appeared on the slightest dips.. 980 just before this last run up..So me thinks :) this could be another shallow pull back and we might be lucky to see sub 1000 again just because everyone seems like they are trying to find an entry to get long..so the long and short of it is..I would be tempted to go long at 960ish if we got that pullback in sept..
 
First of all, big companies tend to have multiple listing as it would be easier for them to raise cash from investors and secondly, I doubt there's such a huge difference as I guess you either made a mistake with ticker or shares are different.
 
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