Hyundai Motor Corporation is a South Korean auto manufacturer that has become a global provider of efficient and economical cars. The company’s stock trades primarily on the Korea Stock Exchange. Depository receipts for Hyundai stock trade on several European stock exchanges, but not in the United States. American investors should avoid the grey market Hyundai shares that trade in the over-the-counter-OTC-market. The grey market is unregulated and unsponsored trading of shares of foreign stock and the OTC market is the trading of stock shares outside of the stock exchanges. OTC shares often are thinly traded and it may not be possible to find a buyer if you want to sell shares.
1. Open and fund a brokerage account with a broker that offers international stock trading. E-Trade and Fidelity are the only discount, online brokers that offer global trading services. Fidelity limits international stock trading to active or high-net worth traders. E-Trade allows the addition of global trading to its trademarked Complete Investment Accounts. These E-Trade accounts combine banking and brokerage services into a single account.
2. Use your brokerage account’s international stock trading screen to look up the price of Hyundai on the London Stock Exchange. Hyundai trades in London as a global depository receipt-GDR-under the symbol HYUD. GDRs are certificates backed by shares of a foreign company held in trust by a bank.
3. Use the broker’s online international order screen to buy the number of shares of Hyundai you wish to purchase. Each GDR share represents one-half share of the Korean company’s common stock.