AktienAmateur069 (@AktienAmateur069) on getquin

4Mon·

Can anyone tell me the difference between the "normal" Nestlé share ($NESN (-0.19%) ) and the ADR version ($NSRGY (-0.25%) )?

What are the differences?

Thanks in advance!

9 Comments

Dividendenopi@Dividendenopi

4Mon

Sorry, I can't help it now 🤷‍♂️.... Google is your friend

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Patrick Schäfer@Hotte1909

4Mon

ADR's are in effect shares that another company or custodian bank owns and you then only buy the rights to them but do not own the share. The problem is that if the issuer goes bankrupt, your ADR is worthless. They can also theoretically force you to sell and the price is usually a little lower because the issuer also wants to earn something from it. In other words, if the Nestlé share price rises by 1%, the ADR price will only go up by 0.95%. Of course, this is also determined by the custodian bank. So strictly speaking, you own a certificate and not a share. Of course, you have no voting rights at the AGM, but you are normally entitled to dividends. I hope I have expressed it clearly 😉

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PunktPunktKommaStrich@PunktPunktKommaStrich

4Mon

ADR (American Depository Receipts)

ADRs (American Depository Receipts) are traded on a stock exchange on behalf of a share. They are certificates issued by American credit institutions that have taken the underlying share into custody. An ADR can relate to one, several or even just a fraction of a share. ADRs are often traded on behalf of foreign shares that are not listed on the domestic stock exchange. In this way, the stock corporation does not have to undergo the full admission procedure that would otherwise be necessary for a stock exchange listing.

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Christian@Chris87

4Mon

Is there anywhere to see who the owner of these ADR's is?
E.g. JP Morgan or something similar 🤔

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