Paired Shares

AAA

DEFINITION of 'Paired Shares'

The stock of two separate companies that are under the management or supervision of a single corporation. Paired shares are traded as if they are one stock and are sold as one unit. The stock of both companies typically appears on one stock certificate, with each stock printed on one side of the stock certificate. In general, one stock yields a higher dividend, while the other has a greater potential for growth. A share of stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Also called "Siamese Shares" and "Stapled Stock."

INVESTOPEDIA EXPLAINS 'Paired Shares'

For example, Carnival Corporation and plc (known previously as P&O Princess Cruises plc), completed a dual listed company transaction in April 2003. Shares of Carnival Corporation common stock were paired with trust shares of beneficial interest in the P&O Princess Special Voting Trust. These new shares were referred to as the "trust shares" or "paired shares."

RELATED TERMS
  1. Contingent Shares

    Shares of company stock that are issued only if certain conditions ...
  2. Earnings

    The amount of profit that a company produces during a specific ...
  3. Common Stock

    A security that represents ownership in a corporation. Holders ...
  4. Stock

    A type of security that signifies ownership in a corporation ...
  5. Shares

    A unit of ownership interest in a corporation or financial asset. ...
  6. Adverse Domination

    A legal doctrine that allows regulators to bring litigation against ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. How To Invest In The Nikkei 225
    Mutual Funds & ETFs

    How To Invest In The Nikkei 225

  3. A Guide To Japan’s Nikkei 225 Index
    Investing Basics

    A Guide To Japan’s Nikkei 225 Index

  4. Investor, Know Thyself: Choose A Stock ...
    Investing Basics

    Investor, Know Thyself: Choose A Stock ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center