Can foreign companies get there stock listed on US market without issuing ADR?
If so, what is the difference between this directly listed stock and the ADR? What are the pros and cons for each option?
- Anonymous1 decade agoFavorite Answer
I can answer part of your question. Yes, foreign shares can be traded in the U S without having ADRs. I know because I own one.
The main advantage of an ADR is that it is traded directly in U S dollars. Directly listed shares go through a currency translation process that can be kind of messy.
Shares that are not ADRs are traded on the pink sheets along with many that are ADRs. Pink sheet listed companies are subject to very wide trading spreads between bid and ask prices. Exchange traded ADRs have much narrower spreads.
- Anonymous1 decade ago
don't think so. There is no difference except 1 ADR will normally be for more than 1 share. Also you can only trade on the same exchange. i.e. you cannot swap between the two.I suppose you could have a dual listing; a lot of small US stocks are traded on AIM, but they are usually Reg S which means US citizens cannot buy them. Very strange these Americans!
- MysteryLv 61 decade ago
Yes. However, to be listed on NYSE or NASDAQ they will have to meet the same requirements of a US company. And the requirements of their home country. Most find it easier to set up an ADR if they want to trade on a US exchange.
Canadian mining companies, such as PWE or TCK are some that do list directly on US exchanges.
- LindaLv 44 years ago
BIDU, BHP, Tata Motors (don't have symbol)