1 / 10

Investing Internationally

Investing Internationally. With American Depository Receipts and Shares. American Depository Receipts. X Casablanca. Problem: Shares of “Cafe Americain” sell on the Casablanca Exchange in francs and all the company’s publications are in French and Arabic.

madge
Download Presentation

Investing Internationally

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Investing Internationally With American Depository Receipts and Shares

  2. American Depository Receipts X Casablanca Problem: Shares of “Cafe Americain” sell on the Casablanca Exchange in francs and all the company’s publications are in French and Arabic.

  3. American Depository Receipts Solution: • The Bank of New York buys 10,000 shares of Cafe Americain at f30. per share. • The Bank issues 1,000 Negotiable Receipts and sells them on the New York Stock Exchange at $15. • Each Cafe Americain ADR represents 10 shares of the company.

  4. American Depository Receipts Solution: • The Bank has all the required and relevant documentation translated into English • The bank collects dividends in francs, converts them at a better rate of exchange, and pays it to ADR holders in dollars.

  5. American Depository Receipts • If you own a Cafe Americain ADR then you have a receipt on a Bank which owns Cafe Americain Shares. The Bank of New York is the registered shareholder.

  6. American Depository Shares X Casablanca • American Depository Shares are just like American Depository Receipts except that Rick issues the ADSs directly. • If you own a Cafe Americain ADS then you own a Cafe Americain Share;you are the registered shareholder.

  7. ADRs & ADSs • ADRs and ADSs from all over the world trade on the NYSE, AMEX, and NASDAQ • British Airways BAB • Canadian Pacific CP • Daimler Benz DAI • Honda Motor Company HMC • Phillips NV PHG • Toyota TOYOY

  8. ADRs & ADSs • The Wall Street Journal does not distinguish an ADR or ADS in its listings,however, Barrons (published by Dow Jones every Monday) states ADR or ADS in the listing.

  9. UISES • UISES trades all stocks listed on the New York Stock Exchange,American Stock Exchange, &NASDAQ, Including .... • American Depository Receipts • American Depository Shares • Closed End Funds

  10. The End

More Related