Investors looking to trade foreign stocks in the U.S. often encounter OTC tickers ending in “Y” or “F”. These symbols indicate whether the stock is an American Depositary Receipt (ADR) or a foreign ordinary share. Understanding the difference is crucial for making informed investment decisions.
What Are OTC Stocks?
Over-the-counter (OTC) stocks are securities that trade outside major exchanges like the NYSE or NASDAQ. Many foreign companies list their shares on the OTC market, allowing U.S. investors to gain exposure without trading directly on international exchanges.
OTC tickers ending in “Y” or “F” help investors distinguish between two different types of listings:
OTC Tickers Ending in “Y”: American Depositary Receipts (ADRs)
An OTC ticker ending in “Y” represents an American Depositary Receipt (ADR). ADRs are issued by U.S. banks and represent shares of a foreign company, making it easier for American investors to trade international stocks.
Key Features of “Y” Tickers (ADRs):...