PDSnet Glossary

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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Definition

A listing on the stock market of a company's origin and where it has its main business. Thus a company might have a primary listing on the JSE because it is a South African company, and then a secondary listing on another market  because that market has investors interested in its business. For example, Prosus has a primary listing on the Euronext in Amsterdam and a secondary listing on the JSE. British American Tobacco (BAT) has a primary listing in London on the London Stock Exchange (LSE) and a secondary listing on the JSE. This means that the price of BAT is set on the LSE and the JSE follows that price. Traders will use arbitrage to keep the prices of shares which are dual listed in sync with each other, taking into account exchange rates.

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