Saturday, February 9, 2008

Global stocks listed on local stock exchange.

This week Prague Stock Exchange welcomed two companies from abroad. First is from Austria, Vienna Insurance Group which is traded in main segment SPAD. Next emission is on second (electronic) market RM-SYSTEM. This time is coming from Finland, it is Nokia (NOK). After Deutsche Bank AG (DB), Nokia is second foreign stock listed on electronic exchange. Share prices are converted to Czech Koruna CZK.
The intention for listing foreign stocks on electronic market and lowering trading commissions helped to increase trading volume on RM-SYSTEM and reached record turnover in 2007. Secondary market has enough liquidity now and it is right place to be for small and mid size investors.

Comments

2 Responses to "Global stocks listed on local stock exchange."

Anonymous said... February 10, 2008 at 4:20 PM

Hi,
I've just read your blog post where you mention RM-SYSTEM
(using the term "second market"). I'm trying to figure out what
is the connection between RM-SYSTEM and Prague Stock Exchange.

On they website they say they are "an organiser of off-exchange
trading". Is that mean they are not part of PSE and they operate
like, for example, forex brokers? I would really appreciate it
if you could write few words in the subject. I don't need
specifics - just the general idea. I've tried to figure it out
from the Internet but the informations I've got are a little bit
unclear to me.

Thank you in advance.

Vlada, Czech Republic said... February 10, 2008 at 4:21 PM

You are fully right. RM-SYSTEM is independent off-exchange electronic exchange. And therefore share prices differs between RM-SYSTEM and Prague Stock Exchange markets (segment SPAD and segment KOBOS)