Investing Internationally

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Investing Internationally
With American Depository Receipts and Shares
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American Depository Receipts
X Casablanca
Problem Shares of Cafe Americain sell on the
Casablanca Exchange in francs and all the
companys publications are in French and
Arabic.
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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.

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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.

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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.

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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 Shareyou are the registered
  shareholder.

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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

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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.

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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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The End