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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.

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Investing internationally

Investing Internationally

With American Depository Receipts and Shares


American depository receipts
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.


American depository receipts1
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.


American depository receipts2
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.


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.


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.


Adrs adss
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


Adrs adss1
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.


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



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