Pepsi moving from NYSE to NASDAQ

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
ResearchMed
Posts: 5867
Joined: Fri Dec 26, 2008 11:25 pm

Pepsi moving from NYSE to NASDAQ

Post by ResearchMed » Fri Dec 08, 2017 4:43 pm

Here is a brief snippet about this:

https://www.cnbc.com/2017/12/08/pepsi-w ... -nyse.html

What difference does it *really* make?

Is any part of it some sort of prestige, preferring to be on one exchange vs another?

RM
This signature is a placebo. You are in the control group.

snarlyjack
Posts: 578
Joined: Fri Aug 28, 2015 12:44 pm
Location: Montana

Re: Pepsi moving from NYSE to NASDAQ

Post by snarlyjack » Fri Dec 08, 2017 5:28 pm

ResearchMed,

I own both Coke & Pepsi in the Vanguard High Dividend Index Fund.
They are listed in the Footsie High Yield Index. I' am not sure
if Pepsi moving to the NASDAQ will make a difference or not.

If Vanguard takes Pepsi out of the High Dividend Yield Index Fund
because of the move to the NASDAQ, I' am going to be quite miffed.

I love Coke, Pepsi, Boeing, John Deere, Exxon & other great companies in
the Vanguard High Dividend Index Fund.

Longtermgrowth
Posts: 492
Joined: Thu Nov 26, 2015 1:59 pm

Re: Pepsi moving from NYSE to NASDAQ

Post by Longtermgrowth » Fri Dec 08, 2017 7:39 pm

I too am curious about others view of the change. As of now, I have no clue if it's viewed as a step up or not!

snarlyjack, Kraft Heinz Co is mentioned in that article as already being on that exchange, and it's currently listed as holding #49 for VYM on Vanguard's site.

Edit: An interesting comparison: https://amigobulls.com/articles/nasdaq-vs-nyse
Last edited by Longtermgrowth on Fri Dec 08, 2017 8:20 pm, edited 1 time in total.

jdilla1107
Posts: 586
Joined: Sun Jun 24, 2012 8:31 pm

Re: Pepsi moving from NYSE to NASDAQ

Post by jdilla1107 » Fri Dec 08, 2017 8:13 pm

It makes no difference to an investor. It's likely a cost savings play on Pepsi's part. Companies often get financial incentives for switching. The NYSE considers themselves the "name brand" exchange and charges more in listing fees.

EddyB
Posts: 403
Joined: Fri May 24, 2013 3:43 pm

Re: Pepsi moving from NYSE to NASDAQ

Post by EddyB » Fri Dec 08, 2017 8:19 pm

ResearchMed wrote:
Fri Dec 08, 2017 4:43 pm
Here is a brief snippet about this:

https://www.cnbc.com/2017/12/08/pepsi-w ... -nyse.html

What difference does it *really* make?

Is any part of it some sort of prestige, preferring to be on one exchange vs another?

RM
Nasdaq listings are cheaper to maintain. There are some rule differences that matter when the issuer is engaged in some types of transactions or for questions of corporate governance, but nothing that would make a difference to an ordinary shareholder.

User avatar
nisiprius
Advisory Board
Posts: 34993
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: Pepsi moving from NYSE to NASDAQ

Post by nisiprius » Fri Dec 08, 2017 9:12 pm

It might make some difference to the investor. The NYSE used to have stricter listing requirements than other exchanges, and in some cases companies have moved because they wanted to do something that wasn't quite kosher according to the NYSE rules.

The specific example I have in mind was Wang Laboratories, which wanted to introduce a second class of stock, class B, with 1/10th the voting rights of class A, and also to rename Class A to Class C so that any order for Wang stock that failed to specify the class would be considered an order for Class B stock. The NYSE wouldn't let them do it, so they moved to the AMEX, which would.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

Post Reply