Every morning, before the opening of trading in Tel Aviv, we tell you about the “dual stocks” that have returned from the last trade on Wall Street. Many Israeli companies are traded both on the local stock exchange in Tel Aviv and on Wall Street in the USA – these shares are the dual shares. It is important to emphasize that duality is not necessarily traded on Wall Street, although these are shares that are traded in two different trading arenas, usually in the country where the company operates, and on a stock exchange in a large country Otherwise, for example, a company Energian Engaged in oil and gas exploration around the world and even controls the “Tanin” and “Shark” reservoirs, it is a British company traded on the London Stock Exchange and the Tel Aviv Stock Exchange. So does a company atm engaged in the development and production of communication and cyber systems and medical equipment for laboratory tests.
Among the largest and best-known dual stocks traded in Israel and New York is the pharmaceutical giant naturethe phosphate producer I.C.La company nice engaged in the development and production of software for customer relationship management and risk management, company Elbit Systems dealing mainly in the field of security and more.
arbitrage
The law in Israel defines the rules according to which companies traded on two different stock exchanges, one of which is Tel Aviv, must be conducted, and the way to transfer the shares between the exchanges, and this is because price differences may sometimes arise between the share prices in the different exchanges which allow arbitrage between the exchanges whose operating hours Various.
Arbitrage is the exploitation of a difference in the prices of a certain asset in two or more markets, for the purpose of profit. A simple arbitrage operation may involve buying an asset in a market where its price is cheap and selling it in another market at a higher price. More complex arbitrage operations may include buying and selling operations of several assets in a large number of markets, which offset each other and leave a profit in the hands of the operator.
For example, on Tuesday the day after tomorrow, trading in Tel Aviv will resume after Simchat Torah, and the dual shares will be affected by the arbitrage gaps, as they will return from trading on the other exchanges. Below are the arbitrage gaps as of this time (it will be clarified that tomorrow there will be trading on Wall Street which will also affect the arbitrage gaps):
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