NASDAQ'S NEW ATTACK COMPANIES LURED BY DOUBLE-LISTING OPTION.Byline: Gregory J. Wilcox Staff Writer Competition between the nation's two biggest equities markets intensified Monday when six companies, including Countrywide Financial Countrywide Financial Corporation (NYSE: CFC) is a diversified financial marketing and service holding company engaged primarily in residential mortgage banking and related businesses. Corp., said their stock would trade on both the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and the Nasdaq. The others are The Charles Schwab Charles Schwab can refer to:
http://cadence.com/. See also Verilog. and Apache Corp., an oil company. Nasdaq announced the plan Monday. Participating businesses that now trade solely on the NYSE NYSE See: New York Stock Exchange will use their current ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors on both exchanges. The dual-listing option is the latest development in the fight for market share between the electronic Nasdaq market and the venerable NYSE, taken to task lately for its governance policies and compensation paid to former chairman Dick Grasso. Nasdaq Chief Executive Officer Robert Greifeld Robert Greifeld is the current CEO of NASDAQ. Robert Greifeld is President and Chief Executive Officer (CEO) of the Nasdaq Stock Market, Inc., the largest electronic screen-based equity securities market in the United States. implied that dual listing could eventually convince companies to switch from the NYSE to his exchange. ``The recent issues with the New York Stock Exchange certainly are important, but that hasn't been central to our discussions with these companies. Our discussions with them have been based on the performance of the market and on speed of execution, depth of liquidity, and price discovery,'' he told The Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. . NYSE spokesman Ray Pellecchia said companies have always been free to trade on more than one exchange. ``In terms of actual trading there's nothing new here,'' he said. For example, Calabasas-based Countrywide is traded on the NYSE and Pacific Stock Exchange. Still, the NYSE won't ignore the broadside from the Nasdaq and acknowledged it is in competition with the younger market. ``The exchange takes all competitive threats seriously and we'll continue evolving our market to be the most competitive for our listing stocks,'' he said. Pellecchia also noted that the past few years have been a one-way street for companies moving from the Nasdaq to the NYSE. Since 2000, there have been 120 companies that moved from the Nasdaq to the NYSE while one has gone from the NYSE to the Nasdaq, he said. In theory, the dual-listing program could enable investors to get the best price available on a stock while companies that dual-list could increase liquidity by having more trades executed. For example, stock can be converted to cash quicker than other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. such as real estate. Rick Simon, a spokesman at Countrywide, said his company likes the potential choices dual listing offers. ``It's a low-risk situation for us and the opportunity to experiment to see if those benefits actually do come from a dual listing. I think our feeling is the competition between the two systems will bring some of those benefits but we don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. for sure.'' Gregory J. Wilcox, (818) 713-3743 greg.wilcox(at)dailynews.com WHAT'S THE DEAL? Six companies listed on the New York Stock Exchange will soon list their stocks on the Nasdaq as well. The move gives investors the opportunity to find the best price on the two different markets, and gives the dual-listed firms a chance to increase the number of shares traded, because of Nasdaq's faster systems. No formal consensus has been reached within the fund industry on how to value dual-listed stocks. In the consolidated stock tables published by the Daily News, the companies will continue with the NYSE notation. CAPTION(S): box Box: WHAT'S THE DEAL? (see text) |
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