Depositary Share

Depositary share is a security representing a fractional interest in a larger preferred share or similar deposited security.

Why this matters to income investors

The fraction of a preferred share represented affects payment and redemption amounts per traded unit.

How to use depositary share in your research

Read the security’s payment terms, seniority, maturity or call rights, and issuer credit condition. Compare the income at your purchase price with the amount you could lose if payments stop or the security is redeemed.

This material is general education and information, not individualized investment, tax, or legal advice.