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."

BREAKING DOWN '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."

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