I’m having a difficult time figuring out the difference the two stocks. Google is not of much help either. Is TOYOF a split of TM and the poor man’s stock with a lower trading price?

OTC verses NYSE

OTC stocks

More detail.

ADRs vs local currency OTC local market stocks - Seeking Alpha

The article suggests that one difference is that TM is an American Depositary Receipt, which is ownership of a security that a US institution creates that holds Toyota Motors common, that is based on ownership of a certain number of Toyota Motors shares - the 'receipt' part of the ADR - which is bought and sold in USD on a US market. TOYOF seems to be an actual share of Toyota Motors common stock as listed on the Tokyo Stock Exchange, just bought on the US OTC market.

Doing some more research. Oddly enough, the current price of Toyota Corp stock on the Tokyo Stock exchange is 2,615.5 yen which converts to USD as $17.20 at today's exchange rate. TOYOF closed at $17.34 while TM closed at $173.02.

So it may be may be that the price difference could be based on ADR holding 10x shares per receipt, or something like that, but I don't want to just guess that. Doing more research.

Yep. Here's the SEC.gov description of TM.

quote:

Each ADS represents an ownership interest in ten shares of Toyota’s common stock, which shares are held with a custodian for the depositary, currently Sumitomo Mitsui Banking Corporation.

Toyota has kind of slumped recently. Maybe that makes it a good time to add some shares - it's a great company.

Thanks for the info. The more I research the more I find out I'm over my head. I guess I should just stick with TM. I was going to throw a few bucks at the stock and thought I could get more the TOYOF but it seems a little more risky.

quote:

Originally posted by joel9507:
Toyota has kind of slumped recently.

Yep. Likely a reflection of the major hit their reputation for legendary reliability has taken lately, with some big engine and transmission issues in their newest generation cars and trucks leading to massive recalls, plus the financial hit to the company from having to fund the recalls.

quote:

Originally posted by RogueJSK:

quote:

Originally posted by joel9507:
Toyota has kind of slumped recently.

Yep. Likely a reflection of the major hit their reputation for legendary reliability has taken lately, with some big engine and transmission issues in their newest generation cars and trucks.

Hence why I am looking to buy a few shares.

I think Toyota's future is rosy, compared with most car companies. They have been contrarians on the EV push, pushing back with more and more hybrid vehicles that are reliable, competitive, and get better gas mileage than non-hybrid competitors.

Oh, I agree. I certainly trust Toyota to bounce back from a run of quality issues much more than any of the domestic auto manufacturers, who seem to have spent the last decade+ in a race to the bottom when it comes to reliability and longevity.

I'd consider Toyota's recent reliability issues to be an anomaly, not their new normal.