Hi All,
When a stock lists on both NSE and BSE for the first time, how is it decided how many shares would be available in NSE and how many in BSE on the listing day?
Thanks
Think of NSE and BSE like a marketplace. Let’s say Amazon and Flipkart.
If you want to buy the iPhone 7, you can choose to buy it either from Amazon or from Flipkart. You compare prices on both sites and decide where to buy from.
The stock market works the same way.
NSE and BSE provide a platform to buy shares from and nothing else. Just as Apple doesn’t change their manufacturing to cater to either Flipkart or Amazon, the companies don’t change their business decisions to cater to either exchanges.
The total number of shares outstanding has been internally decided and cleared with SEBI. All of these shares are available on both NSE and BSE for those who want to buy them.
Source Quora.