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Author: Adam1226 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 195  
Subject: Direct Purchases Date: 6/11/2010 7:33 PM
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What's the difference between buying a stock in US dollars via pink sheets and using Etrade's Global Trading feature to purchase directly off of various exchanges?

Thanks,
Adam
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Author: TMFMmbop Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 189 of 195
Subject: Re: Direct Purchases Date: 6/14/2010 10:04 AM
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A few things to look at...

1.The commissions may be different.
2. You'll tend to get more liquidity in the local exchange, though that's not true of all Pink Sheets-listed ADRs.
3. If you buy in local currency, you're netting out potential currency effects -- something you may, or may not, want to do.

Tim

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Author: Adam1226 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 190 of 195
Subject: Re: Direct Purchases Date: 6/16/2010 7:32 AM
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"If you buy in local currency, you're netting out potential currency effects -- something you may, or may not, want to do."y n

Can you explain? Seems to me that if the value goes up, it goes up. Why does the local currency matter?

Thanks,
Adam

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Author: GauchoChris Three stars, 500 posts Old School Fool CAPS All Star Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 192 of 195
Subject: Re: Direct Purchases Date: 8/19/2010 1:49 PM
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1.The commissions may be different.
2. You'll tend to get more liquidity in the local exchange, though that's not true of all Pink Sheets-listed ADRs.
3. If you buy in local currency, you're netting out potential currency effects -- something you may, or may not, want to do.


4. You won't pay ADR fees.

5. Securities held in foreign currencies may not be applied as marginable (check with the broker).

6. Exchanges may have different trading rules. For example, round lot requirements ma be different and limit orders may be required in some cases.

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