Earlier this month, it was announced that Volkswagen AG of Germany chose the OTC Markets Group Inc.’s OTCQX International tier for trading its equities in the U.S. – over exchanges such as NASDAQ and the NYSE.
The ticker symbols are: VLKAY for Volkswagen’s common stock and VLKPY for its preferred stock. The actual securities traded are ADRs (American Depository Receipts) which in Volkswagen’s case represent 1/5th of a share of the underlying stock.
Volkswagen of course needs no introduction. Headquartered in Germany, it is one of the biggest and best-known carmakers in the world, and the largest carmaker in Europe. Its brands include Bentley, Audi, Bugatti and Lamborghini in addition to Volkswagen.
Volkswagen’s equity is traded in prestigious stock markets in Germany, Switzerland, the U.K. and Luxembourg. The company’s primary exchange is the Frankfurt Stock Exchange.
Volkswagen’s choice of the OTC Markets Group as the market for trading its equity in the U.S. is certainly a vote of confidence for the OTC Market Group’s operations.
The OTC (Over the Counter) markets in the U.S. are often viewed with trepidation by investors. But having major international corporations such as Volkswagen, along with Yamaha Corporation (OTCQX:YAMCY) and Deutsche Lufthansa AG (OTCQX:DLAKY) choosing the OTC markets for U.S. trading of their securities seems to contradict this assertion, at least as a blanket statement..