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