Prompted by a discussion on the Seeking Alpha about how RDSB would be a buy for an individual if it fell below $60 again I was somewhat confused. I thought it sounded a lot more expensive than the current LSE price and it is. At time of writing LSE RDSB is £23.07, while on NYSE it’s $61.33 (approx £48.86, so roughly twice the LSE price).
My very basic Googling around the subject suggests pricing should pretty much equilibriate across markets so what gives here? Is a NYSE “share” of Shell two times the “share” of the company that is purchased on the LSE. I would have assumed not and that the shares of the same company and class purchased on different exchanges would be essentially fungible, but I think I must be missing an important fundamental point here. Can anyone shed any light?
Replying to my own post as I’ve just seen in my screenshot that the NYSE shares are called RDSB ADR shares. A quick further Google shows on HL that an ADR share is indeed worth 2 B shares. Mystery solved! Leaving the post up as I couldn’t figure out how to delete it.
When I started getting into investing about 2-3 years ago, it took me about a month to work out what GBX is when looking at a share price. I didn’t get why the value was a hundred times higher on google finance compared to other websites.
Same for Lloyds I own the US variant and it’s $3.30 p/s. I own Hon Hai as well and on the LSE you get 2 shares for the price. And share price reflects that as it’s double when you convert Taiwanese currency when into dollars.
No idea what’s up with Lloyds though. I bought it on the fundamentals and only looked at the LSE price a few weeks ago
Edit: It seems that it’s 4 shares for the ADR if this is what HL mean to the right of the name of the stock
I’ve yet to see a dividend from Lloyds yet but good to know. I’ll post somewhere if they do take a cut, either DeGiro or the payout p/s being less. Thanks
