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REDDIT
SK Hynix ADR vs DRAM. Does anyone understand the inclusion into DRAM mechanics?
I read the SK Hynix ADR is supposed to open at $180, roughly 20% higher than the Korea ticker.
Does that mean the ADR will start being added into DRAM at the 20% premium? So DRAM won't actually benefit from any of the 20% increase in price?
And are the Korean ticker and the ADR expected to gradually converge in price - as in either the KR ticker moves up or the ADR moves down (or both)? If the ADR is added to DRAM at $180 and then gradually moves down to meet the KR ticker price, aren't DRAM holders naturally scammed just by an inclusion mechanic?
I don't fully understand the inclusion mechanics here, but they seem like they're going to be funky. Please weigh in if you do understand.