18. Is Wilson Sons listed on São Paulo Stock Exchange (B3)?

Wilson Sons Limited is a company incorporated under the laws of Bermuda. In 2007 a sponsored program of Brazilian Depositary Receipts (BDRs) was launched. This program allowed the shares to be traded in the São Paulo Stock Exchange.

Brazilian Depositary Receipts (BDRs), also known as CDVM (Certificado de Depósito de Valores Mobiliários), are certificates, issued by Brazilian banks, representing shares of those companies that are based outside Brazil.

BDRs are a convenient way for Brazil-based investors to receive access to foreign shares. The certificates are priced and traded in reais and many companies have their shares traded on the São Paulo Stock Exchange (B3).

Previously, due to regulatory restrictions, only investment funds, financial institutions, and legal entities or individuals with financial investments over BRL 1 million could make this type of investment.

Brazilian Securities & Exchange Commission (CVM) recently changed the rule and made this type of investment accessible to all investor classes from October 2020 onwards.

BDR Advantages

The Brazilian stock market is the largest in Latin America but it is less developed when compared to the largest equity markets around the world. The CVM decision has opened up opportunities for Brazilian investors that can invest now in the best-in-class world public companies.

BDRs offer Brazilian investors a way to purchase stock in overseas companies that would not be available otherwise. These depositary Receipts are attractive because they allow investors to diversify their portfolios and purchase shares in foreign companies.

These stocks are priced and traded in Reais but the value of depository receipt would fluctuate along with any heightened risks in the foreign country where the companies operate. BDR´s offer a protection against Real devaluation as they give investors the opportunity to hold shares in the equity of foreign countries.