Skip to Content
scroll

Understanding BHP ADR’s

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

Understanding BHP ADR’s

Can i buy BHP shares on the ASX for $39 aud, turn into an adr on ibkr and sell for $49usd??

Answer

Hi Denge,

Usually when it sounds too good to be true it is, however, we applaud your out of the box thinking.

  • The BHP ADR’s, which are priced in $US, represent TWO BHP shares, once the conversion from 2:1 is made and the FX is taken into account alas, there is no arbitrage opportunity!
chart
image description
BHP Group Ltd (BHP US)
image description

Relevant suggested news and content from the site

Back to top