Introduction to Cross listing

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Cross-listing or dual-listing is the registration or listing of shares in a country other than where
the concerned company's first IPO (Initial Public Offering) took place.


Dual listing used to be a path often chosen by companies with operations in more than one
country to achieve a larger group of investors. Due to the high additional fees associated with a
second listing, and increasing trends of investors mobility - the trend of dual listing in recent
years has declined. Another negative aspect is very high regulatory requirements that may vary
from country to country.

The latest and most comprehensive form of multiple listing is the listing of a Global Global
Registered Share (GRS). This is the securitization of direct business interests in shares which
are directly admitted to trading in many stock exchanges. One of the examples entails the stock
of DaimlerChrysler AG, which serves as a first "real" global registered share.

This stock type exposes the publication of brochures in various languages and the
establishment of transfer agents in various countries. For many companies a depository is a
comparatively inexpensive way to make their own shares indirectly tradable abroad, and these

    - American Depositary Receipts,
    - European Depositary Receipts
    - Global Depositary Receipts.

Less common:

    - International Depositary Receipts (IDR) - available in Brussels,
    - Dutch Depositary Receipts (GDR) - available in Amsterdam
    - Swedish Depositary Receipts - available in Stockholm
    - Singapore Depositary Receipts (SDR)

Generally, the company must own the shares are traded abroad, and provides the tradability of
a mediating investment bank with operations in both countries, the country of the company shall
deposit the shares and investors abroad according to an indirect trade worldwide.

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