Dual listing happens when a company's shares are listed on more than one stock exchange. Companies apply for listing their stocks in different stock exchanges to gain access to the capital markets of different countries, which subsequently make company shares more liquid. As many people buy and sell a stock, the liquidity of traded stock increases. Liquidity in stocks is defined as the degree to which a stock can be bought or sold without influencing its price. However, some exchanges in themselves do not have a large user base, and the value of stock varies from other bourses since it has less liquidity. The high bid-ask spread poses some risk and benefits to investors.