That's not a stupid question at all. I had to do some reading up on dual-listed companies (DLCs) when I initially invested in MSB.
Yes, the commodity price in each market can be somewhat misaligned. Generally though, the price between MSB and MESO doesn't differ too much. The ease of international trading these days and the lure of arbitrage has ensured that the prices are rarely significantly different.
Listing on the NASDAQ gives Mesoblast significant exposure to a very big population; this can cause explosive share price rises on good news, as more buyers are clambering to buy shares in blockbuster companies at any price they can get them... I would argue also that the US values biotech stocks much more rationally than Australia (mostly due to greater maturity of their bio market).
It might surprise you that both BHP and Rio Tinto are DLCs. For some basic reading check out the wiki page particularly the 'mispricing in DLCs' and 'arbitrage' sections:
https://en.wikipedia.org/wiki/Dual-listed_company
MSB Trading 2020 - a new dawn, page-2046
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Last
$1.17 |
Change
0.000(0.00%) |
Mkt cap ! $1.330B | |||
| Open | High | Low | Value | Volume |
| 0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 5896 | $1.22 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.11 | 32 | 1 |
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