Given that they’re both a stock, their noticeable difference lies in where they’re listed. Carnival CCL stock is listed on the London stock exchange. At the same time, Carnival CUK or PLC is recorded on the New York stock exchange.
If you’re new to the stock exchange world, you might have heard of these terms and had trouble navigating your way through it. They may sound like the same thing with just a different ticker. And if this is your hint, you’re not really wrong.
They’re both cruise industries in which one could buy stock to gain profit. Before we get to their differences, let’s first take a closer look at stocks.
What’s a Stock?
Stock consists of shares into which ownership of a corporation or company is divided in terms of finance. It’s also known as equity. The stock is a security that represents a share you own in a particular company.
So basically, it means that when you purchase the company’s stock, you’re actually buying a small piece of that company. This piece is what is known as a “share.”
You might’ve heard of the stock exchange market. This is where the stocks are bought and sold.
New York Stock Exchange (NYSE) or NASDAQ are examples of these stock exchanges. Investors purchase stocks in companies that they think will increase in value—this way, they earn a profit.
Generally, there are two main types of stocks. These include common and preferred. Common stockholders have the right to receive dividends and can also vote in shareholder meetings.
But it’s the Preferred stockholders who receive a higher dividend payout. In liquidation, they’ll also have a higher claim on assets than common stockholders.
Stocks are an investment. In simple words, they are a way to build wealth.
Through stocks, ordinary people get the chance to invest in some of the most successful companies in the world. And in return, stocks help companies raise money to fund growth, product, and other initiatives.
Take a look at this video which explains how the stock market works:
What’s Carnival CCL?
CCL stands for “Carnival Cruise Line.” It’s under Carnival Corporation with a common stock traded on the New York Stock Exchange under “CCL.”
The company made an initial public offering (IPO) of 20% of its common stock in 1987. And then, CCL was incorporated in Panama come 1974. From that, Carnival Corporation became one of the largest leisure travel companies in the world.
It operates global cruise lines. Its top cruise line is the Carnival cruise line brand and Princess cruises. Overall, the company operates 87 ships that sail to over 700 ports worldwide, catering to about 13 million guests every year.
Further to its line of brands are Holland America Line, P&O Cruises (Australia and UK), Costa Cruises, and AIDA Cruises. On the other hand, Royal Caribbean, Norwegian Cruise Line Holdings, and Lindblad Expeditions are its primary competitors.
What’s Carnival PLC? (CUK)
It’s actually the Carnival UK that operates it.
“Peninsular and Oriental Steam Navigation Company,” or P&O Princess Cruises, founded Carnival PLC. It’s a British cruise line located at Carnival House in Southampton, England.
Their cruises are Britain’s favorite cruise line as they started by offering voyages known as excursions. It’s such a big British American cruise because they operate a combined fleet of over 100 vessels across ten cruise line brands.
Carnival PLC stock is listed on the London stock exchange market with CCL. On the other hand, the New York stock exchange is listed under CUK.
In short, Carnival is composed of two companies. These include the Carnival Corporation in London and one in New York. They both function as one unit with contractual agreements, ensuring smooth operations.
Why Does Carnival Have Two Stocks?
One thing about this corporation that confuses many investors is that it has two different ticker symbols. This raises the question of why Carnival has two separate stocks.
Carnival Corporation‘s business structure is a unique one. It incorporates two different legal entities which function as a single economic enterprise. Their two separate stocks are related to where Carnival shares are likely to trade.
Carnival is a tour operator company with Ted Arison as the founder in 1972. It engages in the operation of cruise ships which has a lot of shares that investors can buy.
If you buy stocks on the Carnival UK, they would only use that money for that specific Carnival branch. And the same way goes if you buy stock in the US. In other words, although they are one, their markets are growing separately.
But then again, Carnival claims that shareholders of both entities have equal economic and voting interests. Their businesses are combined and have agreements to ensure that they operate in a union form.
Take a look at this table to know the two Carnival company information:
|CCL Company Info
|CUK Company Info
|Name: Carnival Corp
|Name: Carnival PLC
|Based in the US.
|Based in the UK.
|Traded on London Stock Exchange
|Traded on New York Stock Exchange
What Type of Stock is CCL?
Carnival Corporation consists of common stock under the symbol CCL on the London stock exchange. Common stock pertains to the percentage ownership share one has in a company.
This particular stock exchange is a subsidiary of the Intercontinental exchange. The thing about CCL stock is that it has the most significant volume of shares that get traded every day.
What Type of Stock is CUK?
On the other hand, Carnival PLC or CUK is a common stock, too, but it is traded on the New York stock exchange. And just like CCL, these stocks are tied to Carnival Corp.
For example, imagine a company with 10,000 shares, and you bought 100 of them. This makes you a 1% owner of the company. That’s how common stock works.
What’s the Difference Between CCL and CUK Stock?
First of all, Carnival Corp and Carnival PLC‘s similarities are that they can be regarded as dual-listed companies. Their businesses are combined, even though they are separate legal entities. Shareholders of both companies have the same economic and voting interest.
The only difference is that their shares are listed on different stock exchanges and are not switchable or transferable. These shares are mutually independent.
Another big difference between the two entities is that the two stocks don’t trade at the same price. Throughout the early and mid-2010, Carnival PLC had its stock priced at a higher rate. On the other hand, Carnival Corporation couldn’t keep up.
Another reason why one stock is cheaper than the other is also related to the rates of different markets and how they’re performing. For instance, when the London stock exchange market looks more attractive than the New York one, they’ll sell CCL shares higher. Whereas, when the CUK market is more lucrative, the CUK shares will be higher.
Therefore, it’s always good to check both stocks in the cruise ship giants!
Which Stock is Better, CUK or CCL?
Personally, I think CCL is much better. There’s a real benefit to holding CCL dollars over CUK dollars. The advantage is in liquidity.
CCL shares are easier to transfer into cash, and it also has a higher volume each day. However, there are times when CUK shares are higher, but that happens very rarely.
It’s a chance that you can take if you have faith in Carnival PLC!
Moreover, many suggest that one should opt for the cheaper stock. As both these entities vary in which one has a higher-priced share than the other, one should always be on the lookout.
For example, if CUK offers a cheaper and better stock with a healthy discount, investing here is better than the CCL. However, this also depends on if you’re ready to travel to another country searching for a better price.
Most investors heavily involved in the stock market don’t mind the journey from one country to another. As profits mean a lot to them, they’re willing to jump from CCL shares to PLC CUK shares for their benefit.
What are the Benefits of Owning Carnival Stock?
The main benefits of owning some cruise lines’ stocks are onboard credit and dividends. Aside from that, the most significant advantage of owning Carnival cruise shares is having “shareholder benefits.”
The shareholder benefit provides holders with at least 100 Carnival Cruise Lines (CCL) stock shares and onboard credit. However, shareholders cannot transfer this to cash.
Here are the onboard credit and its equivalent sailing days that are only available to those with a minimum of 100 shares at Carnival Corporation or Carnival PLC:
- $50= six days or less cruise
- $100= seven to 13 days cruise
- $250= 14 days or more extended cruise
This credit can be applied to any cruise line that the Carnival Corporation owns. However, it’s not automatic. The shareholder has to apply for this credit for each cruise.
There’s no limit, and if you cruise all year, you can get the benefit for each cruise. Carnival doesn’t report it to the IRS, so it’s not taxable. Although, some limitations are listed in their terms and conditions.
In conclusion, aside from their difference in location, they also differ in prices. The prices of these stocks vary based on the difference in market performance worldwide.
The thing is, supply and demand play a key role. Companies will sometimes issue more shares to cover company costs. These include overhead, and day-to-day expenses, leading to lower prices or rates.
Although Carnival Cruise line is a leading company in the stock market world, it has faced a crash due to the COVID-19 pandemic. They have seen a significant downfall in their share prices, and many believe that there’s nothing they can do about it. They say that the cruise industry will be the last to recover from the troubles caused by the pandemic.
However, it’s still considered a profitable company to invest in, and it can rebound nicely.
Just remember that you should always check where the prices are lower and then go for those. It’s always better to buy at a low price and sell at a higher one.
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