Replies to post #40770 on Flexpower Inc. (FLXP)

[MCArmel1]

"American Depositary Receipt - ADR

A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.

This is an excellent way to buy shares in a foreign company while realizing any dividends and capital gains in U.S. dollars. However, ADRs do not eliminate the currency and economic risks for the underlying shares in another country. For example, dividend payments in euros would be converted to U.S. dollars, net of conversion expenses and foreign taxes and in accordance with the deposit agreement. ADRs are listed on either the NYSE, AMEX or Nasdaq."

[R-money]

that is interesting if that is true, if they were using U.S. traded shares, the foreign bank would need to hold there shares, there should have been significant buying by the foreign German bank. They must hold our shares then issue a derivitave off of that... Therefore the price in Germany will be tied to actions of the company, since the amount of shares held by the bank remain in the bank, it isnt really a matter of supply and demand since it is tecnhically a seperate issue. Do we know for certain we have ADR status, is there an equivalent in Germany since I doubt they use an AMERICAN depository receipt... lol