Confusing share prices


(Louis emina) #1

Hey guys am a little confused. I want to purchase BP shares for the good dividends it gives. The trade for about £43 a share but when I went to purchase them on freetrade their £5! Am I missing something?


(Alex Sherwood) #2

Hi :wave:

BP shares currently trade for around £5 (see Google Finance for example), I’m guessing that you’ve seen the share price published elsewhere e.g. Google Finance, in pence so 555.50

23

but this translates to £5.55 in normal money

the prices displayed by different sources may be different because our prices aren’t always live & are ‘indicative’ - see the bottom of the stock’s page in the app for details

I hope that helps :smile:


(Dave Smith) #3

BP also trade for $43 on the New York stock exchange, maybe this is part of the confusion

I presume these are different shares representing a different amount of equity? anyone know how that works? I’ve never thought about it before


(Aris David) #4

BP listed in NYSE is a sponsored ADR (American Depository Receipt).


(Chris) #5

Yeah BP use ADS / ADR’s to list their stock in NY as well as London.

The London shares represent 6 ordinary UK shares - https://www.bp.com/en/global/corporate/investors/information-for-shareholders/share-capital.html

This is mainly because they account and report in $ so its easier for them to work based on the NYSE standards and then convert back to GBP for distributions / dividends.

Legally 1 US ADS is equal to 6 regular commons shares from the LSE.