Depositary Receipts are also known as Certificates of Shares. When a share is transferred to a foundation (in the Netherlands a STAK), this foundation then issues a certificate of a share. This certificate gives entitlement to several things, for instance dividend that comes in on the underlying share or the value increase at a moment of sale of the underlying share and sometimes even the voting rights. Trust Conditions stipulate which rights are attached to the certificate. Briefly put, a certificate is a guarantee that gives you rights that derive from a share.
Beginner
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Do you facilitate options on the platform?
Yes, we absolutely do. Options are widely used and acknowleged. We often offer them as “options on certificates of shares”. Eventually an option is a token moving from one person to the other to indicate whether they have a right to a share, and if so, how many. The token represents an agreement of which […]
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