A couple questions regarding stock tickers
When I start entering a certain ticker on Google Finance, a list of options drops down showing the different exchanges the company is listed on. Do the financial statements break down the number of shares issued in each exchange, or give more information about the differences? Because I haven't been able to find any of that.
Typing "EADS" into the search box, I get:
EAD EADS NV EPA EADSY EUROPEAN ARN D&S UNSP/ADR PINK EAD EUROP.AERON.DEF.+SP.EADS ETR EADSF EUROPEAN AERONAUTIC D&S PINK EADS North America, Inc. EAD EUROP.AERON.DEF.+SP.EADS FRA EADS Test & Services (UK) Ltd. EADA EUROP.AE.DEF.+SP.EADS ADR ETR
What the hell is going on?
I'm specifically interested in the difference between the two PINK listings. I know that ADR means it's a listing of a specific number of shares - but then why do they have "regular" stock on the otc as well?
Some of these have different prices, and more confusingly, the changes in prices are different (some drop, others rise.)
Just not sure which I would buy if I were interested in the company, and I'd like to be able to clear that up in case I will be.
Thanks.
This is the one that you should be looking at:
http://www.google.com/finance?q=EPA%3AEAD&ei=kvhoUKikNYb_qAGE4gE
(Notice how the others are missing market cap, P/E, shares out, and the comparables are different).
Unfortunately, I wouldn't be able to purchase any of those shares through a retail broker. The pink sheets (EADSF, EADSY) are the only ones available.
One is an ADR, the other apparently isn't, so I am a bit confused.
I'm not sure if I would buy them anyways if BAE backs out of the deal.
That's fine, but I'm really just interested in getting my question answered.
Is there anyone that can clear this up for me?
If you are still around to see this .... you a few misperceptions. The company 'lists' its shares usually with just one exchange. It is that exchanges job to ensure compliance with whatever rules. Sometimes non-US companies list a second time on a US exchange to give their shares access to US traders. In that case they must comply also with US rules.
But 'listing' your shares does not 'give them a home exchange'. Shares trade wherever two people get together and agree to a swap. There are all kinds of different 'places' where this can happen with all kinds of outfits stealing trading volume from what you think as 'exchanges' ( like NY and Amex). Hopefully arbitrageurs keep the pricing the same. Some brokers offer the choice to route your order to the 'best' place. Other brokers don't let you specify where the trade is actually made.
An ADR is not the same as the actual shares issued by the company. It is a synthetic derivative. Some American bank has bought a whack of the actual shares and put them in a trust. The trust issues its own shares and labels them as ADRs to trade on US exchanges without the company having to list and comply with US rules.. There is not necessarily a 1:1 ratio between ADRs and actual shares.
The pink sheets often trade shares that are not either ADRs or foreign company shares dual listed in the US. The pink sheets simply prove the meeting of people owning actual shares and wanting to trade. Personally I would not trade there because you a stuck if liquidity dries up. The benefit for Americans is that the foreign shares trade in US dollars so Americans don't need access to foreign exchanges or need to convert currencies.
Thanks for clearing that up, you've been a huge help!
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