A share is a share is a share (or is it?)

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?

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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.

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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 :man_shrugging:

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

This makes me think we might get some value out of a ‘newbie friendly no question considered silly’ style thread?!

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ADRs carry some disadvantages/fees. So it’s better to own the actual share, not the ADR. https://topforeignstocks.com/2016/05/13/adr-fees-what-is-it-and-why-it-is-important-be-aware-of-it/

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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 :+1: