Rolls Royce, 5:1 Stock Split
Rolls Royce (RYCEY) announced a 5:1 Stock Split.
Here are a few things to consider:
1. This stock is traded in American Exchanges as an ADR. ADR stands for American Depository Receipt. I haven't seen the ADR designation, as many of these Foreign stocks now trade as ADS, or American Depository Stocks (or Security). There is a little confusion around both of these designations.
A. They line up their ducks to trade here, but do not go for a full exchange listing. They sign up as an ADR with the NYSE.
B. Usually these stocks are not widely traded. This one does not have options.
C. You never really know what you're getting without much research. For example, one ADR may represent 10 shares of the stock back home. Or 1/3 of a share. Most are one for one.
D. They trade on other exchanges, often when the American Stock Exchanges are not open.
E. These stocks are subject to the news (including Filings, Speculation, Local TV, et.), but with more affect with at home. Oftentimes, this news is not prominent here.
So, all-in-all, I avoid these. However I did make money on Hershey's years ago. But that was a little different, trading on the Pink Sheets.
STOCK SPLIT DETAILS: They announced this split on 8/11. It is a 5:1 Split (on the ADR). The split is set for 8/27 over to 8/28. At the time of this posting the stock is at $62.80. The chart looks splotchy because this stock is not widely traded.
This stock trades on the London Exchange, ticker: RR.