So, i did wikipedia it. That there is some sort of arrangement between the broker/ Deposit bank in USA and the foreign market which facilitate the transaction. However i have some questions,
. Who initiates a share purchase? the US open market particpant asks the broker to get the foriegn shares and then the broker buys those shares and gives ADRs to local US buyer?
or
The broker already has the shares, and just transfers in the name of the local buyer?
So, i did wikipedia it. That there is some sort of arrangement between the broker/ Deposit bank in USA and the foreign market which facilitate the transaction. However i have some questions,
1) . Who initiates a share purchase? the US open market particpant asks the broker to get the foriegn shares and then the broker buys those shares and gives ADRs to local US buyer? No idea. I have bought several ADRs without bothering to find out mechanism. I just buy thrum discount broker. What u meant was who is the market maker?
or
The broker already has the shares, and just transfers in the name of the local buyer?
2) what does 'depository' actually mean here.. no idea
3) how are dividends taxed?
3rd question I can answer. European shares are taxed in Europe I think. And I get credit fir it during tax time. Again I have not bothered to find such details. Buy good companies at good or fair price with good balance sheet. Rest is noise which I let other folks worry about.
So, i did wikipedia it. That there is some sort of arrangement between the broker/ Deposit bank in USA and the foreign market which facilitate the transaction. However i have some questions,
1) . Who initiates a share purchase? the US open market particpant asks the broker to get the foriegn shares and then the broker buys those shares and gives ADRs to local US buyer? No idea. I have bought several ADRs without bothering to find out mechanism. I just buy thrum discount broker. What u meant was who is the market maker?
or
The broker already has the shares, and just transfers in the name of the local buyer?
2) what does 'depository' actually mean here.. no idea
3) how are dividends taxed?
3rd question I can answer. European shares are taxed in Europe I think. And I get credit fir it during tax time. Again I have not bothered to find such details. Buy good companies at good or fair price with good balance sheet. Rest is noise which I let other folks worry about.
So, i did wikipedia it. That there is some sort of arrangement between the broker/ Deposit bank in USA and the foreign market which facilitate the transaction. However i have some questions,
1) . Who initiates a share purchase? the US open market particpant asks the broker to get the foriegn shares and then the broker buys those shares and gives ADRs to local US buyer?
or
The broker already has the shares, and just transfers in the name of the local buyer?
2) what does 'depository' actually mean here..
3) how are dividends taxed?
for question 1. I believe the company initiate the ADRs to access US market because in Level 2 & level 3 ADRs the company has to follow US securities law and has to submit some forms in case of Level 2 & Level 3 ADRs and not in case of Level 1.
for Level 2 & level 3 Company has to prepare it's accounts in accordance with US GAAP if it is not already preparing under US GAAP.
Depositary in this case means any investment bank or broker through whom company issues ADR by depositing its shares with them.
The fast question answer is TDC A/S Initiates Share Buy-Back Program.
The Board of Directors of TDC A/S has decided to initiate a share buy-back program of up to DKK 750,000,000. The purpose of the share buy-back program is to distribute to the shareholders the cash (less taxes and costs) received from TPSA in connection with the settlement announced by TDC on 12 January 2012 (see company announcement 1/2012).