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AIB- Dublin vs New York stock prices- Can anyone explain?

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Senior Manager
Joined: 25 Nov 2006
Posts: 333

Kudos [?]: 70 [0], given: 0

Schools: St Gallen, Cambridge, HEC Montreal
AIB- Dublin vs New York stock prices- Can anyone explain? [#permalink]

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03 Nov 2008, 13:57
Hello,

I am following this stock: AIB (Allied Irish Banks) and have noticed the difference in price between Dublin and NY.

1 USD = 0.79 EUR, therefore the NY price is worth 8.20 EUR. That's 95% higher than the Dublin price..

This looks too good to be true, I must be missing something, but what?
Can anyone explain why there's such a difference between the two?

Cheers,

Lumone

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VP
Joined: 09 Jan 2007
Posts: 1045

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Location: New York, NY
Schools: Chicago Booth Class of 2010
Re: AIB- Dublin vs New York stock prices- Can anyone explain? [#permalink]

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04 Nov 2008, 23:54
I can't see the actual picture, could you repost it?
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Senior Manager
Joined: 25 Nov 2006
Posts: 333

Kudos [?]: 70 [0], given: 0

Schools: St Gallen, Cambridge, HEC Montreal
Re: AIB- Dublin vs New York stock prices- Can anyone explain? [#permalink]

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05 Nov 2008, 14:05

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Senior Manager
Joined: 25 Nov 2006
Posts: 333

Kudos [?]: 70 [0], given: 0

Schools: St Gallen, Cambridge, HEC Montreal
Re: AIB- Dublin vs New York stock prices- Can anyone explain? [#permalink]

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05 Nov 2008, 14:07
Also, I found this different names for the stocks on Yahoo! finance

NY -> ALLIED IRISH PLC ADS
Dublin -> ALLIED IRISH BANKS

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Senior Manager
Joined: 30 Jul 2007
Posts: 385

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Location: Europe
Schools: St. Gallen '09
Re: AIB- Dublin vs New York stock prices- Can anyone explain? [#permalink]

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09 Nov 2008, 17:09
possible arbitrage play. short the us shares and buy the euro shares.

but, don't take that as investment advice!

it looks like the market is quite thin for the us shares. notice the puny volume compared to the euro shares. this could indicate that there is simply more people unwilling to give up those us shares (at least for the moment) than there are people willing to sell them.

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Director
Joined: 20 Feb 2008
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Location: Texas
Schools: Kellogg Class of 2011
Re: AIB- Dublin vs New York stock prices- Can anyone explain? [#permalink]

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09 Nov 2008, 17:43
I'm guessing they run a different float on each exchange. For example, the market cap on the NYSE is \$4.03 Billion and on the Dublin exchange it's market cap is 3.2 billion Euros. That's about equal to the exchange rate.

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Re: AIB- Dublin vs New York stock prices- Can anyone explain?   [#permalink] 09 Nov 2008, 17:43
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AIB- Dublin vs New York stock prices- Can anyone explain?

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