What Were Guilder Shares?
A Guilder share was an ownership stake in a Dutch company that could be traded in the United States because it represented shares that had been canceled in Dutch stock markets.
Guilder Shares, also called New York Shares, represented a unique international trading arrangement for shares of companies based in the Netherlands, as Dutch stocks couldn’t be traded through American Depository Receipts (ADRs) at the time. Today, ADRs can be listed on Dutch companies, rendering Guilder Shares obsolete.
Key Takeaways
- International Trading Solution: Guilder Shares allowed Dutch companies to list shares on the New York Stock Exchange (NYSE).
- Dutch Regulation Bypass: Previously, Holland prevented shares listed on its national exchanges from being traded outside of the country.
- Alias: Also known as New York Shares, Guilder Shares enabled Dutch companies to cancel shares on the Netherlands exchanges and list them on the NYSE.
Understanding Guilder Shares
Buying shares of companies located in foreign countries usually involves purchasing an ADR, which is a certificate representing those foreign shares.
Since the Netherlands did not permit Dutch company stock to be traded internationally, a specific number of shares must be canceled in the Netherlands and later grouped and sold as Guilder Shares in the U.S. It’s notable that the term ‘guilder’ also refers to the former Dutch national currency before the introduction of the euro.
Dutch ADRs Today
An American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. depositary bank representing a specified number of shares—often one share—of a foreign company’s stock. ADRs trade on U.S. stock markets just like any domestic shares do.
ADRs offer U.S. investors a method to purchase stock in overseas companies that would otherwise be inaccessible. Moreover, foreign firms benefit as ADRs allow them to attract American investors and capital without the complexity and costs of listing on U.S. stock exchanges.
Today, several Dutch ADRs are tradeable on U.S. exchanges. Additional Dutch ADRs are traded in the U.S. over-the-counter (OTC) market. Listed below are some Dutch ADRs available on major U.S. exchanges:
| Name | Ticker | Listing Exchange | Industry |
|---|---|---|---|
| Aegon | AEG | NYSE | Life Insurance |
| argenx | ARGX | NASDAQ | Pharmaceuticals & Biotech |
| ASML | ASML | NASDAQ | Tech Hardware & Equipment |
| ING Groep | ING | NYSE | Life Insurance |
| LAVA Therapeutics N V | LVTX | NASDAQ | Biotech |
| Philips Electronics | PHG | NYSE | Leisure Goods |
| RELX NV | RENX | NYSE | Media |
| Trivago | TRVG | NASDAQ | Travel & Leisure |
| Unilever N.V. | UN | NYSE | Food Producers |
| VEON Com | VEON | NASDAQ | Mobile Telecom |
Related Terms: American Depository Receipts, ADRs, Dutch Stocks, NY Shares.
References
- Top Foreign Stocks. “The Complete List of Dutch ADRs”.
