If I buy shares of a company on one exchange can I sell them on another?

Question

For Example:

Today 10/12/06 one share of Bank of America is $54.36 on the NYSE

On the Xetra exchange in Germany one share is 42.55 euro and and $53.41 after the exchange rate is applied.

Is there any way to buy 1000 shares of Bank of America on the Xetra in Germany for $53.41 and sell those shares on the NYSE for $54.36 making a profit of $950 on the difference?

Answer 1

As a historic note J P Morgan used to do that particular trick all of the time. He would buy stock on the London exchange and sell it on the NY exchange. And I am sure the hedge funds today take advantage of that trick.

For us lowly peons, it is somewhat impractical.

Answer 2

This Site Might Help You.

RE:
If I buy shares of a company on one exchange can I sell them on another?
For Example:

Today 10/12/06 one share of Bank of America is $54.36 on the NYSE

On the Xetra exchange in Germany one share is 42.55 euro and and $53.41 after the exchange rate is applied.

Is there any way to buy 1000 shares of Bank of America on the Xetra in Germany for $53.41 and sell...

Answer 3

Yes, you can do that. It's called market arbitrage. The problem is, that the spread is usually so small that the comissions to buy the stock on one market, and sell on the other are too costly. Plus, you have to find a brokerage house that will trade like that on both markets (I'm not sure if they even exist). Is one share on the German exchange worth one share on the NYSE? Yes. Is it worth you looking into doing? No, unless you have a lot of money, and even then there are better things you can do with it. I believe there are hedge funds that use this business model, and can use their millions to leverage your $50,000.

Answer 4

For the best answers, search on this site https://smarturl.im/aD1Ai

REPLY BASED ON THE BASIS OF POSITION OBTAINING IN MY COUNTRY. A. If you are talking of 'day trading' - in which case, the transaction is to be squared off on the same day - it is not possible. One will have to operate through a broker, and the accounts of the two Exchanges are kept by the broker separate. If one makes a purchase on one Exchange and sale on another Exchange of same number of shares of same company, the two transactions will be shown in broker's records separately, Exchange-wise, as the settlement and clearing systems of the two Exchanges are separate. Both the transactions will have to be squared off separately on the same day. B. If the purchase is made on 'delivery' basis, the position is that after delivery of shares bought on one exchange, they can be sold on other exchangee. The debit or credit to the customers Demat Account is done by the Depository Participant, Depository's agent).

Answer 5

In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options https://tinyurl.im/aH4vg An option has only two outcomes (hence the name "binary" options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.

Answer 6

You have discovered the lucrative business known as arbitrage... and yes, some companies specialize in these differences and make millions. I have to wonder about the commission charges for an individual... I'm sure it will eat into your profits, but I say go for it and see what happens.