Cross-border listings and CAD/USD

Transcript

Cross-border listings and CAD/USD. In this guide: dual-listed companies, comparing one pair, and the exchange rate behind the comparison.

Many large Canadian companies list their shares in Toronto and in New York. Cross-Border Arb compares the two listings' prices. Each listing trades in its own currency, so the page converts one price before it compares them.

Choose a popular pair, or type a Canadian ticker and its U.S. ticker. Here, Royal Bank: RY.TO in Toronto, and RY in New York.

Both prices load into the form: the Toronto price in Canadian dollars, and the New York price in U.S. dollars. Prices are delayed.

To compare them, the Toronto price is converted into U.S. dollars. The FX-adjusted spread is the gap between the two prices, as a percentage of the U.S. price. Below zero, the Toronto price is the higher one. Above zero, the New York price is.

The volume ratio compares how many shares traded in Toronto with how many traded in New York. Above one, more of the shares traded in Toronto.

The exchange rate is the Bank of Canada's daily average: what one Canadian dollar is worth in U.S. dollars. The page uses the same rate for every pair.

You can check the math: the Toronto price, times this rate, gives the Toronto price in U.S. dollars.

Start your research at quintarthai.com. Next in this path: calculators. This video is general information, not investment advice.