One entity trading on several markets question...

[rnorman3]

Hi all, i'm new to the forum. My question is about financials. Example a huge company like HAL trades on several markets world wide. Say on the NYSE it's $39 a share, on the Berlin exchange it's $25 a share.

How does the fact that it trades on several markets worldwide effect me as an individual investor?

Also, if I look at the financials(balance sheet/income statement), are the shares outstanding for the entire world? And the differences in prices on the various world markets represent the p/e Multiple that those markets demand for the stock?

Thanks,
rnorman3

 

[alexander]

Example a huge company like HAL trades on several markets world wide. Say on the NYSE it's $39 a share, on the Berlin exchange it's $25 a share.

Please if you see something like that again notify this group immediately

 

[rnorman3]

hahaha, I see what your getting at

 

[Dommo]

Wouldn't it be Euro denominated in Berlin? Do you mean $34 for the NY listing? Unless the listings represent different HAL corporations, I doubt there is any material difference in price.

 

[NVP]

any localised market differences in value for a global stock will be for a good
reason believe me.....

N

 

[rnorman3]

OK, my bad, I see now, the stock is supposed to trade at the exact same price in USD on every market it's traded on...duh? I guess that's right.

So, another question, probably equally as stupid, when a stock opens up in the morning...is it opening at the same asking price it's at( or previously closed at) on another market to the east?

 

[rnorman3]

Please, no one has an answer for this question?:

"So, another question, probably equally as stupid, when a stock opens up in the morning...is it opening at the same asking price it's at( or previously closed at) on another market to the east?"

Thanks.