ratio, page-2

Rhys, from what I've read, it would work like this: You buy US$10,000 of PBMD at the market price on the Amex. The next business day in Australia, at an exchange rate of US$1.03 to A$1.00, your broker would buy, on your behalf, 30 times as many shares of PRR on the ASX.

However, if the Amex trading pushed the price up 10%, then you can expect the ASX price to gap up 10% on open, and your US10,000 (or A$9,709) might not get you the number of shares you had hoped for (30x). I don't know what would happen then - would you be asked to pay extra to get the right amount, or would the broker have a pool of shares he would use for your order (pre-purchased on the ASX over the current period)? It's all a bit of a mystery to me . . .