Topic: How To Invest

Q: Pat: What is the difference between Royal Dutch Shell’s RDS-A and RDS-B shares. Thanks.

Article Excerpt

A: Royal Dutch Shell plc (ADR), $65.95, symbol RDS.B on New York and $64.00, symbol RDS.A on New York, (ADRs outstanding: 4.1 billion; Market cap: $266.6 billion;, is one of the world’s largest oil companies with about 92,000 employees in 80 countries. It also has interests in chemical companies and other energy-related businesses. Royal Dutch Shell plc was founded in 1907 and is headquartered in The Hague, the Netherlands. The company has two share classes: the A-shares (RDS.A) are subject to Dutch law; and the B-shares (RDS.B) fall under U.K. law. The primary listing for the stock is on the London exchange (RDS.B), followed by AEX/Euronext exchange in the Netherlands (RDS.A). Both shares also trade on New York as ADRs. The main difference from an investor’s viewpoint is the “A” shares are tied to the Dutch tax system, which means dividends paid out to non-European Union (EU) residents are subject to a 15% withholding tax. In contrast, London-listed “B” shares have no withholding…

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