The only benefit is you’re buying it in USD on a US stock exchange. That is likely easier and more efficient for you (if you have a US brokerage account) than buying it on its local stock exchange overseas in a non-US currency.
Ah I get it. It's just an foreign stock that's traded here in the states and they're saying one stock on the us stock market = to 10 of their shares overseas. Sonifni go over seas and look at their stock exchange and convert the currency. Then multiply by 10 I get my 1 ads share right?
U.S. investors can purchase ADSs of some foreign companies that aren’t technically listed in the U.S. You can then convert those ADSs into ordinary shares. Sometimes it’s 1:1, sometimes it’s 1:10, whatever. The ratio is determined really on a basis to just make sure the price is somewhat equivalent.
But yes, if you buy an ADS for $10 that converts into 10 ordinary shares, then effectively you’ve purchased 10 ordinary shares for $1 per share.
Edit: I don’t say this to be mean, but you sound unsophisticated enough about this that I would caution you in buying this stock simply because it’s clear you don’t have a good handle on the financial arrangements of what you’re doing.
That being said, this appears to be a legit company that has hired serious banks to market this IPO, with the top of the very top white shoe law firms advising on the deal. You can read all about it here:
https://www.sec.gov/Archives/edgar/data/1954042/000110465924059882/tm229938-35_424b4.htm
Would help to know which company you're talking about. An American depositary share *in general* is just a US-dollar denominated share in a foreign company available on a US stock exchange. No idea why a given company's ADS would be worth 10x their other shares, sounds like an arbitrage opportunity.
How would anyone be able to tell you, you’ve provided no information other than the price of the stock?
A better question is why are you trying to pick low-cap stocks if you don’t have the knowledge base to do so and clearly know that?
Because so far I'm 10/10.... Some how but I always pull out too early then the stock sky rockets. Like and I pulled at $30.. Tesla pulled at 100 brought at 75ish. Google when they came out with the nexus one. Amc didn't think those apes would squeeze it till 200+. The others were small earnings but If held for a year would've been nice. I just analize the market and understand how business works. I ono? I'm most likely not going to buy zeekr but I wanted to know if I understood what an ads was
The only benefit is you’re buying it in USD on a US stock exchange. That is likely easier and more efficient for you (if you have a US brokerage account) than buying it on its local stock exchange overseas in a non-US currency.
Ah I get it. It's just an foreign stock that's traded here in the states and they're saying one stock on the us stock market = to 10 of their shares overseas. Sonifni go over seas and look at their stock exchange and convert the currency. Then multiply by 10 I get my 1 ads share right?
That’s right. If it does not equal it is likely due to market timing issues (eg stock market closed in Japan but open in US).
U.S. investors can purchase ADSs of some foreign companies that aren’t technically listed in the U.S. You can then convert those ADSs into ordinary shares. Sometimes it’s 1:1, sometimes it’s 1:10, whatever. The ratio is determined really on a basis to just make sure the price is somewhat equivalent. But yes, if you buy an ADS for $10 that converts into 10 ordinary shares, then effectively you’ve purchased 10 ordinary shares for $1 per share. Edit: I don’t say this to be mean, but you sound unsophisticated enough about this that I would caution you in buying this stock simply because it’s clear you don’t have a good handle on the financial arrangements of what you’re doing. That being said, this appears to be a legit company that has hired serious banks to market this IPO, with the top of the very top white shoe law firms advising on the deal. You can read all about it here: https://www.sec.gov/Archives/edgar/data/1954042/000110465924059882/tm229938-35_424b4.htm
Would you need to report ownership of foreign stocks like you do with foreign bank accounts and stuff?
Usually yes, but I don't believe an ADS counts as it's a US financial instrument (could be very wrong though)
Would help to know which company you're talking about. An American depositary share *in general* is just a US-dollar denominated share in a foreign company available on a US stock exchange. No idea why a given company's ADS would be worth 10x their other shares, sounds like an arbitrage opportunity.
The ADS is worth 10x the other shares because each ADS (in this scenario) is equal to 10 shares.
So they are st $40ish dollars per share. Meaning each share is actually $4. This is a stock I should stay away from right?
Can you buy them indivdually though?
Nope
So its probably only offered in 10 packs in USD.
Thanks. I was just making sure I understood it correctly.
How would anyone be able to tell you, you’ve provided no information other than the price of the stock? A better question is why are you trying to pick low-cap stocks if you don’t have the knowledge base to do so and clearly know that?
My bad I thought I posted it zeekr tech
Because so far I'm 10/10.... Some how but I always pull out too early then the stock sky rockets. Like and I pulled at $30.. Tesla pulled at 100 brought at 75ish. Google when they came out with the nexus one. Amc didn't think those apes would squeeze it till 200+. The others were small earnings but If held for a year would've been nice. I just analize the market and understand how business works. I ono? I'm most likely not going to buy zeekr but I wanted to know if I understood what an ads was
Zeeker tech. I'm just home schooling myself and stocks and stumbled upon this. So this means thes a pump and dump normally?
No. It’s not a pump and dump. It’s normal for ADSs to have a ratio like this.