ADRs
ADRs 101
An ADR is the most common way an American buys a foreign company. It looks like any other U.S. stock in your account, but there is a bank, a custodian and a currency conversion standing behind every share. These guides explain the machinery so you know what you actually own.
All guides in this section
What is an ADR? How foreign shares become U.S.-traded receipts
What an American Depositary Receipt is, how depositary banks create and cancel ADRs, ADS vs ADR, how they settle in dollars, and where they trade.
Sponsored vs. unsponsored ADRs: who set it up, and why it matters
How sponsored and unsponsored ADRs differ, why one company can have several unsponsored ADRs, what it means for fees and information, and how to check yours.
ADR levels explained: what Level I, II, and III actually mean
How Level I, Level II, and Level III ADRs differ in SEC filings, where they trade, and capital raising, plus Rule 144A restricted ADRs. Comparison table.
ADR ratios and pricing: how to check an ADR against its home share
What an ADR ratio is, how to convert an ADR price to the home-market share price and back with the exchange rate, why arbitrage aligns them, and ratio changes.
ADR fees: the small charge most investors never notice
How ADR depositary service (custody or pass-through) fees work, how they are collected, why they hit low-priced ADRs, and where to find any ADR's fee.
ADR dividends: how a foreign payout becomes dollars in your account
How ADR dividends are declared in local currency, converted by the depositary, reduced by fees and foreign withholding, and reported on Form 1099-DIV.
ADRs vs. foreign ordinary shares: three ways to own the same company
ADRs vs. a foreign company's ordinary shares on its home exchange or as OTC "F" shares: costs, liquidity, dividends, withholding, and corporate actions.
When an ADR program ends: terminations, delistings, and your options
What happens when an ADR program terminates or delists: converting to ordinary shares, selling, or taking cash after the depositary sells, plus HFCAA context.