From its earliest incarnation as the Anglo-Swiss Condensed Milk Company in 1866, Nestlé company has sought to find and meet consumer demand. When druggist Henri Nestlé developed a formula for infants the following year, his name served as a logo for competing milk products. Anglo-Swiss and Nestlé battled for markets over the next decade, which saw expanding product lines and markets for both enterprises.
By the dawn of the 20th century, when these businesses had reached the American continent with their products, a merger of the two occurred. The combined company began selling chocolate shortly thereafter and the rest, as they say, is history. Nestlé now does business the world over and is a publicly-traded entity.
Nestlé Publicly Traded Since 1905
Only a couple of years passed after the Anglo-Swiss-Nestlé merger before the newly formed company offered shares on the Zurich Stock Exchange. Headquartered in Vevey, Switzerland, Nestlé S.A. – for Société Anonyme, meaning a Public Limited Company – now runs manufacturing facilities in over 80 countries. Company shares are traded at the SIX Swiss exchange, but investors across the globe can purchase an interest in the company through American Depository Receipts (ADRs).
Any entity with a license to purchase or sell United States' securities can do so with Nestlé ADRs. The Nestlé stock symbol on the Swiss exchange is NESN.SW, and the ADR is represented by the ticker symbol NSRGY.
Buying Nestlé ADRs in the U.S.
In the United States, because Nestlé S.A. is not traded directly on a domestic exchange, stock transactions are said to be "over-the-counter," i.e. traded through a network of brokers and dealers. Large overseas concerns that are invested in the U.S. through over-the-counter dealing – OTCMKTS – include Nestlé S.A., Bayer A.G., Allianz S.E. and BASF S.E. This vehicle stokes the embers of global competitiveness. At any rate, the first step in engaging OTCMKTS is contacting a licensed broker, preferably one with experience in Nestlé ADRs.
Initiating the purchase of Nestlé stock can be worked through a full-service broker or a number of online brokerage services. The first order of business is to open an account with the broker, if necessary. Important at this point is to confirm that – if going the online route – the broker allows OTC trading. Scottrade, TradeStation and InteractiveBrokers are among those that do. From the vantage point of the investor, the process is barely distinguishable from buying shares of listed stocks.
The Value of Nestlé Shares
From the spring of 2020 to the spring of 2021, OTCMKTS: NSRGY shares fluctuated between $99 and $120, with the value of the Nestlé share price peaking in the fall of 2020. Per the company's own reporting, there are currently 2,881,000,000 registered shares issued and 160,000 people are confirmed, registered shareholders.
Once a year, Nestlé stock dividends are distributed. As a rule, shareholders are permitted to vote by proxy at the annual corporate meeting through an independent representative recognized by Nestlé, another shareholder or a third party. Possessing one ADR is the equivalent of one Swiss share.
Tips for Trading Stocks
For those worried that a purchase may be too expensive, a limit order allows them to dictate a price above which they will not go. A high-priced ADR will not be acquired unless and until the price sinks to the parameter prescribed by the limit order.
Take care to select the precise ticker symbol when buying online. These symbols can appear very much alike so being extra meticulous when making a pick is important.
Read More: How to Buy a Stock Once It Reaches a Certain Price
- If you do not want to purchase the stock at the current price, you can place a "limit order" that will permit you to specify the price at which you will purchase the stock. A limit order will not execute until the stock reaches a price at or below the price specified in your limit order.
- Carefully review the ticker symbol of the stock you want to purchase before placing a purchase order. Often different stocks have very similar ticker symbols, and an unwary individual can easily purchase the wrong stock by mistake.
Adam Luehrs is a writer during the day and a voracious reader at night. He focuses mostly on finance writing and has a passion for real estate, credit card deals, and investing.