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I noticed that there are a number of US companies whose shares are traded on London Stock Exchange. Let's take Netflix as an example. In the US, it is traded as NASDAQ:NFLX but in the UK it has another ticker symbol: LSE:0QYI. How are these two connected? More precisely:

  • Do their prices change in the same way, or it is not necessary (and just true in general)?
  • If Netflix was paying dividends, would it pay dividends to the shareholder of LSE:0QYI? If so, would the dividend yield be the same as the one for NASDAQ stock?

Thank you!

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0QYI is a CREST Depotitory Interest (CDI). CDIs are conceptually similar to ADRs in the US.

Do their prices change in the same way, or it is not necessary (and just true in general)?

Due to the exploitation of arbitrage opportunities by other market participants, you can expect the value of a CDI to accurately track the value of the underlying.

If Netflix was paying dividends, would it pay dividends to the shareholder of LSE:0QYI? If so, would the dividend yield be the same as the one for NASDAQ stock?

Owners of the Netflix CDI will receive their dividends in pounds sterling. There will be an automatic currency conversion. The dividend yield should be approximately the same as the one on NASDAQ. I'm not sure if there are annual custody fees, so I'll leave that question to others.

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