info: you and the stock exchanges of the world, part 3

[seperis]

I'm about once a month going to be crushed by work. jamethiel has been unbelievably understanding about this, and you and the community have been too, and I thank you for it. In my defense, I didn't know when they said monthly builds, they meant that each build would be the same size as the builds we did when they were every two to three months and we had a staff cut. So. For the foreseeable future, God help me, I'll be absentish a week or so. That doesn't mean not to email me directly or I'm out of contact. It just means for about five to seven days, I don't even look at LJ or DW or write really tl;dr essays.

Recap for those playing the home game:

Stock Exchange - a company or entity that facilitates the buying and trading of securities (such as stock). It is located in a place, but it is not a place. It is a company.

Listing - companies that can sell securities on an exchange. They do not do this themselves as a rule. They get a member of the exchange to do it.

Membership - companies that do the buying and the selling. Sometimes, they cause the Great Depression. Sometimes, they don't.

Most stocks do not list in multiple exchanges; they do a primary listing and a secondary listing. There are exceptions to this, and they are legion, but they are the exception not the rule.

Now the challenge:

Challenge

First answer wins for the value of $25 (convert to your currency) added to this month. That's a lot of shares of South Sea Pearls:

China Telecom

HKEX: HK$ 4.14
NYSE: USD$52.98
Buenos Aires: PhP100.90

Does anyone know why it's this expensive at NYSE? This is findable on Yahoo Financial, all versions that I checked.

for everyone who responded, USD$10 is added to your total for this month.

lebannen, however, gets the full USD$25, for both getting the answer even though I think she's not sure why, but also for picking up the concept of the ISIN and the fact that every one of these has a different ticker. Very, very good job, seriously. I'm totally raising the challenge amount next time I give one.

Her answer:

They are all different [things]. CHA is the expensive one, 0728.HK is the same one trading as ZCH.x where x is various European countries, and then there's the Argentine one. As a bonus, it's also a different [thing] in Pakistan.

My comprehension of this subject does not yet reach an way of working out what and why these [things] are different. But now I know that ISINs exist, yay?

And we transition to a combination of things that are going to be confusing, but just go with it. It will get clearer the more you trade; that's why I'm encouraging as much trading as possible this month and hopefully next month.

And now your explanation: they're different, even though they're the same company. In the recap, we talked about how companies don't multilist often. And yet, I can still buy China Telecom in the US. This is the beauty of an ADR, an SDR, and a GDR.

( your grocery store has import fees )

( your grocery store sometimes renames things like tickers )

( so how does this relate to the challenge anyway? )

lebannen pretty much nailed it. While it's the same company, the stocks were different. In Hong Kong, you can just buy bits of the company. In the US, you have to buy it through an ADR.

Gameplay

On April 1, 2011, if your home stock exchange has the DR version of a stock (but not the company itself listed), or it lists the stock but at a higher price, and you want that stock, you have to buy it there, even if it's cheaper in Hong Kong. If your country has no version of this stock, then you can be a smart shopper and buy from any of the exchanges listed as open to everyone.

To be honest, this won't come up much, and the price difference will rarely be this dramatic. jamethiel and I won't penalize if we have to make that kind of change.

Potential Stock Exchange Changes

Currently, Deutsche Borsch is negotiating with the Singapore Stock Exchange (SGX) to add it to Xetra. If that goes through, then some if not all stock listed only on the Singapore Stock Exchange (SGX) will be available to all players via Xetra.

Also currently, the Australian Stock Exchange (ASX) is negotiating with Singapore. If that goes through before Xetra, Singapore and Australian players will be able to buy freely in each other's markets.

Xetra will be another entry entirely because it's what could be called a revolution in stock trading.

And that's it. Feel free to post questions, corrections, additions, or if you have specific questions about how any of this pertains to your stock exchange. I have google translations, babelfish, several dictionaries, and I no longer fear sites written entirely in Chinese. Mostly. We have several months before any market rules go into effect and I want everyone completely comfortable with the change before it starts.

This is a lot of information and if you understand it all on the first go, I'm deeply impressed. Familiarity is going to be what works for you here; the more you buy and sell and read tickers and company names, the easier this will be to internalize. Trust me when I say this, there's a reason I was religious investing the first six months I was trading, and I traded a lot in that period of time. For these two months, the more you examine the stocks you want to buy, the more you buy, the more you just trade, the easier it will be to absorb.

Transaction Log, Alpha Version is where you can do all your stock additions. It even timestamps it on the spreadsheet. After you complete the form, you can verify your results here. You can also still use reply to the monday posts. If you do both, please say so in the comment; me and my comod will eventually either add those by hand to the transaction log or use the form.

I'm getting ambitious with googledocs.

Recommended Sites

Businessweek is one of my current favorites now with the drop down that lets you look at the stock on otehr exchanges.

Example: For Aluminum Company of China go to the line below (ACH: New York); at the very end of that line is ACH on Other Exchanges.

Currently for stock quotes, I'm pulling from Google, Yahoo, and Businessweek for the spreadsheets to get around the 1,000 function rule.

Suggestions

If anyone has any suggestions or requests on what you'd like to see posted for information or breakdowns, please suggest; leaving me to my own devices ends up with cheese metaphors.

Finally

Happy trading! I'll be making the next Monday post and part four of 'you and the stock exchanges of the world'. Hopefully it will be much less of an infodump than this one.

Happy trading!

ETA: Transaction Log Questions

A few questions from the Transaction log:

Question:
Is it easier if I write down the number of stocks that I want to buy, or is it fine if I just mention the amount I want to invest?

Answer:
Amount to invest is easier on your math. You can't be sure how much it will go for during the date and time. It could plummet or go up very high.

Question:
I'm not ever quite sure what to put on the international y/n question.

Answer:
See, I really like making forms, and I like being really anal about it, and the way the forms are set up is very--linear. Make a form and then go back adn add questions, you'll see what I mean. It got to my aesthetics big time.

Eventually, this question will come into gameplay for certain types of stocks, and you will be given a full explanation. For now, it's just tossed in for future use. Kind of like the mod area where eventually, mods will do something. Maybe.

I'm going to try and shorten the log eventually so there's not quite so many pages. It will look pretty much like it does now, however, no matter how form-happy I get. Though God do I love forms.

Now you can go back to trading.