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According to my research, it is possible to exchange one stock for another without selling to cash and then buying the other. The process is known as a "stock-for-stock" or "share-for-share" exchange. It typically occurs in corporate actions such as mergers, acquisitions, or spin-offs. However, for individual investors looking to exchange one stock for another outside of such corporate actions, the process would typically involve selling one stock, converting the proceeds to cash, and then using that cash to buy the desired stock.

Now I have the following questions;

  1. Why don’t we have such kind of stock exchanges much like what we have in currency or crypto markets? For instance, we can exchange BTC-to-ETH (Bitcoin to Ethereum) or USD-to-EUR. Is there a way to have something like TSLA-to-GOOG?
  2. What is the impact of such market microstructure on capital market and economy?
  3. Do you know any research on this subject? Actually, I’ve searched for such subject with several relevant keywords but no lock.

Appreciation for your any comments and answers,

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    $\begingroup$ Cross-posted on Economics SE here. $\endgroup$ Feb 2 at 16:43

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Your second and third question seem quite unrelated to your text and the first question. It's also not really clear to me what you're after here. Regarding your first question, two reasons are:

  • This would lead to fractional share holdings as stock prices are generally not multiple of each other which is not desired
  • All these new pairs would be significantly less liquid which participants don't like.
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  • $\begingroup$ thanks for your answer, I am looking for academic or industrial researches and papers on these topics $\endgroup$
    – anonim
    Feb 2 at 16:14
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    $\begingroup$ That’s fine but please ask one question at a time. Also these are overly broad. Please limit yourself to concrete problems you’re facing. Also, please don't cross post. $\endgroup$
    – Bob Jansen
    Feb 2 at 17:03
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    $\begingroup$ "I am looking for academic or industrial researches and papers on these topics". Research on the fact that "stock prices are generally not multiple of each other"? Why would something so obvious warrant research? $\endgroup$ Feb 2 at 20:31
  • $\begingroup$ @IñakiViggers thanks for your comment but obviously it's not obvious. according to your thoughts, "currencies are generally multiple of each other" so we have currency pairs! Is it right? $\endgroup$
    – anonim
    Feb 3 at 16:43
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    $\begingroup$ @anonim "according to your thoughts, "currencies are generally multiple of each other"" Not at all. My comment quotes the answer in that "stop prices are generally not multiple of each other" (emphasis added). Why do you attribute to me the opposite? "we have currency pairs! Is it right?" Yes, and the obvious, uninteresting fact is that the exchange rate of any pair will hardly ever be an integer number. "Research" on that obvious fact would be pointless. $\endgroup$ Feb 3 at 20:23

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