OTC stocks and their foreign stock exchange equivalent
OTC stocks and their foreign stock exchange equivalent
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pstatix · External communityPost link
External question — Personal Finance Stack Exchange
Author: pstatix
Original post: https://money.stackexchange.com/questions/139930
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Do OTC stocks trade similarly to their foreign exchange equivalents?
I'm looking at a company that is not available for US investors on the ASX, but it has ticker on the OTCQX. My broker shows me historical data for this ticker, and it shows it never rose above $0.6 all the way back to 2002; whereas if I look at other charting sites, it shows historical price data similar to the ASX component.
I'm not sure who to believe. I would have thought that the OTC equivalent trades just like it would on its primary exchange, with the only difference in price being the currency used.
Do OTC stocks not trade at the same value as their foreign exchange component?
Edit: the company is ASX:DYL and OTCMKTS:DYLLF; charts:
OTC:
DYLLF
(
screenshot
)
Fidelity:
DYLLF
(
screenshot
)
Google:
DYL
(
screenshot
)
Google:
DYLLF
(
screenshot
)
I'm just unsure why OTC/Fidelity show such low pricing for the OTC stock in years when the company is trading for much 4-5x on its primary exchange duirng that time; plus I'm not sure why Google/StockTwits/Tradingview/SeekingAlpha all show similar price history for the OTC stock but OTC/Fidelity don't. OTC says that DYLLF has been a member of OTCQX since 2018, so perhaps that is where the discrepancy occurs and the charts from Google are showing the history of the primary exchange ticker (DYL)?
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Flux · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Flux
Original post: https://money.stackexchange.com/a/139933
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Do OTC stocks trade similarly to their foreign exchange equivalents?
For
F shares
(such as DYLLF), the answer is "yes". For OTC stocks in general, the answer is "no".
I'm sure that the discrepancies are caused by faulty data. The faulty data is likely caused by Deep Yellow's 1-for-20 reverse stock split in March 2017:
January 2017:
Notice of Extraordinary General Meeting
for approving the 1-for-20 share consolidation.
February 2017:
Results of General Meeting
. Result: share consolidation approved by shareholders.
March 2017: Share consolidation takes place.
However, I do not have access to reliable financial data to tell you which charts are correct.
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Quoted from Forex.com.bd-Editorial External answer — Personal Finance Stack Exchange Author: Flux Source score (net votes, not local likes): 2 Original post: https://money.stackexchange.com/a/139933 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Do OTC stocks trade similarly to their foreign exchange equivalents? For F shares (such as DYLLF), the answer is "yes". For OTC stocks in general, the answer is "no". I'm sure that the discrepancies are caused by faulty data. The faulty data is likely caused by Deep Yellow's 1-for-20 reverse stock split in March 2017: January 2017: Notice of Extraordinary General Meeting for approving the 1-for-20 share consolidation. February 2017: Results of General Meeting . Result: share consolidation approved by shareholders. March 2017: Share consolidation takes place. However, I do not have access to reliable financial data to tell you which charts are correct.
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