Verizon is taking the unusual step of dual-listing itself on both the NASDAQ exchange and the New York Stock Exchange, it announced this morning.
This means you’ll be able to trade Verizon stock on either exchange, as well as the London exchange.
What’s the point? There may be some benefits to investors, who may prefer to trade on one exchange or the other. NASDAQ is probably also doing Verizon some favours in terms of fees in exchange for the move. And it’s always possible that Verizon could use this opportunity to eventually ditch the NYSE. (If you can think of more reasons, let us know in comments below.)
Update: Verizon emails us, saying this move “does not signal a change in our relationship with the NYSE – we still consider the NYSE as our primary listing venue.” It also suggests it’s not related to fees. “Nasdaq’s fees are publicly listed … There are no fees to be dual-listed in the first year, then it’s $15,000 a year after that.”
The company adds, “We’ve been simplifying our exchange listings throughout the world – recently de-listing from Chicago, Frankfurt, Amsterdam and Swiss exchanges, to focus on what we view as the top 3 exchanges in the world: NYSE, NASDAQ and the London Stock Exchange.”
Earlier: Verizon passes us along to this page on the NASDAQ site, explaining the benefits of dual listings:
With a dual listing, investors have greater access to liquidity and more opportunity for best execution. The result? Both your company and your shareholders benefit from the efficiency, speed and low cost that only NASDAQ can offer. Combined with the portfolio of high-visibility services offered to all NASDAQ-listed companies through NASDAQ Corporate Services, a dual listing can give your stock maximum exposure.
Other stocks that are dual-listed include Walgreens, Chicago Mercantile Exchange Holdings, Ivanhoe Mines, etc.
Here’s Verizon’s release:
Verizon to Dual List Its Stock on NASDAQ and NYSE
NEW YORK — Verizon Communications Inc. today announced that it will dual list its common stock on the NASDAQ Global Select Market, effective with the start of trading this morning.
Verizon stock will continue to trade under the ticker symbol “VZ,” and beginning today it will be listed on both the New York Stock Exchange, where it is currently listed, and on NASDAQ.
John Killian, Verizon’s chief financial officer, said, “Verizon has a broad and diverse shareholder base, and we believe that the additional support provided by dual listing will benefit our current and potential investors. We are pleased to now be listed on both of these great exchanges.”
Verizon has approximately 2.5 million shareowners and approximately 2.8 billion shares of common stock outstanding.
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