If a stock I want to invest in is listed on multiple exchanges and is set to list on a major US exchange soon, would the all related shares be transferred to the new exchange, or could one be locked out?
I am thinking of buying a stock in a company that has stated they plan on listing on a major US exchange soon. The company is based in Canada. It is currently listed on the Toronto exchange and on the OTC pink sheets. The one on the TOR exchange has a specific symbol, and the one on the OTC has a slightly different stock symbol. Both are listed at different share prices. If they are all the same company, and they successfully list on the NASDAQ or similar exchange, would the all related shares be transferred to the new exchange, or could one be locked out (and end up stranded)?
It really depends on the company's plans. There are many international companies that have shares listed on multiple exchanges. It is likely that if you buy shares in Toronto, and they list shares on NASDAQ, that you will still own your Toronto-based shares, even though they also have shares listed on the NASDAQ.
The pink-sheets stock may be a different story. What they may be trying to do is move those shares onto the NASDAQ.
The best way to find out is by simply contacting investor relations at the company and asking them directly.