Uncertainty Creates Volatility for Most Actively Traded Foreign Stock

Telebras shares, traded as American depositary receipts over the New York Stock Exchange, are the most actively traded foreign stock. The shares have been extremely volatile amid guesswork over the privatization’s effect on the value of the shares.

On Wednesday, the shares closed at $118, up $4.94, but off the 52-week high of $153.25.

Each share of Telebras will be converted into 12 separate stocks, which is the number of new entities the Telebras breakup has produced. But the timing of when shareholders will receive their new issues remains unclear, as does their value.

Nor will all 12 new stocks necessarily be traded on the NYSE. At least some might trade over Nasdaq. Investment analysts in Brazil expect those decisions to be made within the next month.