It is not uncommon for global corporations to have cross listings, whereby they offer their equity shares on stock exchanges other than their domestic exchange. For example, Sony shares can be bought on the Nikkei index (Sony’s domestic exchange) as well as the New York Stock Exchange. This means that when the Nikkei is closed, Sony shares are still available to trade on the New York Stock Exchange.

Cross listing can increase the liquidity of a stock because it allows investors to choose from a range of markets from which to trade a company’s shares. It can also increase the ability of a company to raise capital. Cross listings can often decrease the bid-ask spread, making it easier for traders from other countries to buy and sell shares at any time.

Many foreign-based businesses that list their shares in US based markets do so via American Depositary Receipts to do so (ADRs). An ADR is a share that can be bought or sold on US stock exchanges, and represents a defined number of shares in a foreign company. Depositary receipts enable traders all over the world to buy and sell a multinational corporation’s shares. They also allow US companies to list shares on European and Asian markets, which may become more widely used if the US dollar is weak in relation to major foreign currencies for a long period of time. The increasing popularity of depositary receipts has helped to increase the number of businesses listing on markets in foreign countries.