In 1989, Jaguar Plc, an English company, was listed on the London SEAQ and on NASDAQ.

At the time, one-fourth of Jaguar common stock was held in the form of American Deposit Receipts (ADRs) quoted on NASDAQ.

Under U.K. accounting principles, Jaguar reported a 1988 net income (before extraordinary items) of 61 million, a decrease of 27% from 1987 net income.

Under U.S. generally accepted accounting principles (GAAP), Jaguar reported a 1988 net income (before extraordinary items) of 113 million, an increase of 89% over the comparable figure for 1987.

Assume everything is legally reported & no fraud occurring

From the investor's point of view, what is the issue?

What would your reaction be as an investor?

What should an investor do?