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[ + ]How do I convert my foreign shares into ADRs and vice versa?
You can transfer your foreign shares to JPMorgan's custodian bank in the issuer's home country. Upon receipt of the foreign shares, JPMorgan Chase Bank, N.A. will issue ADRs to you, representing the newly deposited shares. To convert your ADRs back into foreign shares, you should instruct your broker to cancel the ADRs, and provide him or her with complete delivery instructions in the issuer's home country.
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[ + ]What are the benefits of holding ADRs?
ADRs eliminate many of the obstacles of holding non-U.S. securities since they trade and settle according to U.S. market practices, are quoted and traded in dollars and pay dividends in dollars. They eliminate custodian safekeeping charges in the issuer's home country and facilitate prompt dividend payments and corporate action notifications.
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[ + ]How can I buy Vale’s ADRs?
You can hold ADRs directly through JPMorgan Chase Bank, N.A. as depositary, in which case you are a ‘registered’ holder. Registered ownership occurs when the owner of the stock is registered (or recorded) on the books (or records) of the corporation. Registered ownership is also known as "direct" ownership and the registered holder is known to the corporation as one of its shareholders. Registered shareholders receive all corporate communications, dividends, annual reports and proxy material directly from the company through the ADR depositary bank. Ownership comes in two forms: physical certificates, which evidence shares, or book-entry shares, which are evidenced by an account statement.
In contrast to registered holders, beneficial or 'street name' holders usually hold their shares through a bank or brokerage account and are not directly registered on the books of the company. Investors purchasing shares throu gh a broker must specifically direct the broker to register the shares with the corporation, if they wish to become a registered holder.
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[ + ]How did the share-split carried out by Vale in May/June 2006 work?
At an Extraordinary General Meeting held on April 27, 2006, Vale shareholders approved a proposal to split the Company's shares, by which each common or preferred share in the Company was split into two shares, either common or preferred, post-split. This share-split was aimed at repositioning the price of the Company’s shares after substantial appreciation, making it easier for retail shareholders to buy and sell Vale shares.
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[ + ]How did the share-split carried out by Vale in August 2004 work?
At an Extraordinary General Meeting held on August 18, 2004, Vale shareholders approved a proposal to split the Company's shares, by which each common or preferred share in the Company was split into three shares, either common or preferred, post-split. This share-split was aimed at repositioning the price of the Company’s shares after substantial appreciation, making it easier for retail shareholders to buy and sell Vale shares.
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[ + ]What is meant by the terms custodian agent and depositary bank?
The Company's custodian agent is the institution in Brazil which registers the shares in the name of those who buy them, and guarantees their ownership of these shares. Vale's custodian agent is Banco Bradesco S.A.
The depositary bank is the institution that issues ADRs, maintains a record of the holders of ADRs, registers the trades carried out and distributes the dividends or interest on shareholders equity payments in dollars to the holders of the ADRs. Vale's depositary bank for its ADRs is JP Morgan.
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