POPA ReconWhy SK Hynix ADR trades at a large premium on Nasdaq but can't be arbed
Why SK Hynix ADR trades at a large premium on Nasdaq but can't be arbed • ADR (American Depositary Receipt) = certificate issued by a US bank that represents shares of a foreign company • SK Hynix has 2 versions of its stock: one on Korea market and the ADR version recently listed on Nasdaq • Each ADR is 1/10 of the local share and currently trading at a large premium • Premium exist because US/global investors strongly prefer the ADR + easier custody/settlement + local Korean shares harder to access • Conversion of the stock is 1-way • ADR → Local shares: Easy and free to convert • Local…
The excerpt is quoted from a public Telegram channel, which owns its text.