American Depository Receipt (ADR)

American Depository Receipt (ADR)

Postby sidney » Mon Aug 24, 2009 2:49 pm

Anyone knows what is ADR? For example, if a stock in sgx is listed here, at the same time it had Adr in another exchange, is there any linkage between these 2? For example, enable of riskless artibrage.


Any material difference between dual listing Vs single listing + ADR listing in another country?
Tempered.
User avatar
sidney
Foreman
 
Posts: 484
Joined: Wed May 07, 2008 10:24 pm

Re: ADR

Postby kennynah » Mon Aug 24, 2009 3:04 pm

ADR stands for American Depository Receipts

In my knowledge, ADR is not considered as a listing in the US exchanges. It merely means that an institution, such as a bank, purchased a sizeable quantity of the stocks from its listed exchange, and places it out in US exchange for trading. One of the reasons for this, is the ease of access to such a stock for the american public. using Rolls Royce as an example, you will understand that it is not as easy for an american to open a brokerage account in London just so he can buy some RR stocks, as if this was available for trading as an ADR.

Abitrages can happen, perhaps in a split second.... there's no free lunch in this world. computers track the differences in prices due to fx fluctuations...and opportunities are seized within a nano-second...

i am not certain if ADRs attract dividends and possess exact similar characteristics as a stock... u need to google for all info, if say you intend to buy hyflux or chartered semicon from an american exchange
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 16005
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: ADR

Postby millionairemind » Mon Aug 24, 2009 3:11 pm

Sid,

Try Investopedia. It is a pretty good source of information.

http://www.investopedia.com/terms/a/adr.asp

Hope this helps.

mm
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
User avatar
millionairemind
Big Boss
 
Posts: 8183
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: ADR

Postby greenhoney » Mon Aug 24, 2009 4:13 pm

they do pay out their dividends to holders of ADRs and IF i am not mistaken, the voting rights of a holder of ADRs is not the same with that of a common share holder of the stock in the original listed country.

this is one of the banks in the US that does ADRs.

http://www.adrbnymellon.com/dr_edu_basi ... nefits.jsp
greenhoney
Foreman
 
Posts: 262
Joined: Tue Feb 17, 2009 9:39 am

Re: ADR

Postby sidney » Mon Aug 24, 2009 4:28 pm

Hi all, thanks for the additional info.

There are many products, how on the earth to know all of them :D
Tempered.
User avatar
sidney
Foreman
 
Posts: 484
Joined: Wed May 07, 2008 10:24 pm

Re: ADR

Postby kennynah » Mon Aug 24, 2009 8:04 pm

no need to know all.... know those very well that you wana trade in...everything else is just noise...
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 16005
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: ADR

Postby greenhoney » Tue Aug 25, 2009 9:33 am

your poor mona lisa got black eye lah kenny.
greenhoney
Foreman
 
Posts: 262
Joined: Tue Feb 17, 2009 9:39 am

Re: ADR

Postby kennynah » Tue Aug 25, 2009 12:07 pm

greenhoney....

yes,,,, just broke up with him last night.... cant stand the violence
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 16005
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: ADR

Postby greenhoney » Tue Aug 25, 2009 12:09 pm

but you been with him for at least 400 years, has he always been abusive? leonardo seems like such a nice guy.
greenhoney
Foreman
 
Posts: 262
Joined: Tue Feb 17, 2009 9:39 am

Re: ADR

Postby kennynah » Tue Aug 25, 2009 12:12 pm

brudder...leonardo's dead a long time..... was referring to the curator
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 16005
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Next

Return to Archives

Who is online

Users browsing this forum: No registered users and 4 guests