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ADRs - An Overview Shareholder Services Dividends & Corporate Actions
What is an American Depositary Receipt (ADR)? >>>

What is the difference between an ADR and an ADS? >>>

Does the term "DR" have a broader meaning than "ADR"? >>>

What is an ADR ratio? >>>

What does a depositary do? >>>

What types of companies issue ADRs? >>>

What are the benefits of ADRs? >>>

Where do ADRs trade? >>>

Is it easy to get information and updates on an ADR company? >>>

What are the risk factors in buying an ADR? >>>

How can I buy an ADR? >>>

What is the difference between a Registered holder and a Beneficial ADR holder? >>>

How can I change my address? >>>

How can I replace a lost certificate? >>>

How can I replace a lost check? >>>

How can I obtain information about my account? >>>

How can I contact Citi's Shareholder Services? >>>

How are ADR dividends paid and taxed? >>>

How can I find out dividend and corporate action information on a company? >>>

Can I have my dividends directly deposited into my bank account? >>>


Back to top What is an American Depositary Receipt (ADR)?
An ADR is a negotiable U.S. certificate representing ownership of shares in a non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Also, ADR dividends are paid to investors in U.S. dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investors, and to provide a corporate finance vehicle for non-U.S. companies.
 
Back to top What is the difference between an ADR and an ADS?
An American Depositary Receipt (ADR) is the actual physical certificate whereas an American Depositary Share (ADS) is the actual share. An ADR can represent any number of ADSs. The term "ADR" is often used to mean both the certificates and the securities themselves.
 
Back to top Does the term "DR" have a broader meaning than "ADR"?
The concept of a DR (Depositary Receipt) also works in markets outside the U.S. For example, GDRs (Global Depositary Receipts) are DRs that are offered to investors in two or more markets outside the issuer's home country.
 
Back to top What is an ADR ratio?
Each ADR can represent one, more than one, or a fraction of underlying shares. The relationship between the ADR and the ordinary share is referred to as the ratio. While many ADR programs are established with a 1:1 ratio (one underlying share equals one depositary share), current ADR programs have ratios ranging from 100,000:1 to 1:100.
 
Back to top What does a depositary do?
A depositary is a bank that provides stock transfer services in connection with a depositary receipt program, including issuing and canceling ADRs, maintaining the register of holders, distributing dividends in U.S. dollars, providing annual meeting services and executing corporate actions.
 
Back to top What types of companies issue ADRs?
ADRs issuers are typically large multinational corporations. Any non-U.S. company seeking to raise capital in the U.S. or increase their base of U.S. investor can issue ADRs. Many of the best-known international names are available to U.S. investor through ADRs including companies such as LM Ericsson Telephone Co., Nokia Corporation, Philips N.V., CEMEX and Pioneer Corporation. You can find a complete list of companies with ADRs at our website, www.citi.com/dr. Go to "dr universe", then click on "Universal Issuance Guide."
 
Back to top What are the benefits of ADRs?
ADRs allow you to diversify your portfolio with foreign securities easily. In addition, ADRs trade, clear and settle in accordance with U.S. market regulations and permit prompt dividend payments and corporate action notification. If an ADR is exchange-listed, investor also benefit from readily available price and trading information.
 
Back to top Where do ADRs trade?
ADRs can be found on the New York Stock Exchange (NYSE) as well as on Nasdaq. In addition, ADRs also trade Over the Counter (OTC). Brokers can access information about OTC securities through the National Quotation Bureau's (NQB) "Pink Sheets" or the OTC Bulletin Board. Trading is conducted through market makers in that particular security.
 
Back to top Is it easy to get information and updates on an ADR company?
Investors can receive annual reports and proxy materials in English. ADRs listed on U.S. exchanges provide holders with the same level of information as any other U.S. security. Trading information is readily available, financials are reconciled to U.S. Generally Accepted Accounting Principles (GAAP), and the SEC regulates the Company's disclosure to investor. formation on OTC ADRs is more limited as trading data is not well publicized, company financials do not conform to U.S. standards and the SEC does not require companies to communicate with shareholders on a regular basis.
 
Back to top What are the risk factors in buying an ADR?
Investing in any security involves a certain amount of risk - along with reward. However, risks specific to ADRs might include country risk, as ADRs are backed by non-U.S. securities, and currency risk.
 
Back to top How can I buy an ADR?
You can buy an ADR through a broker, just as you would U.S. securities. You can also buy the ADRs of some companies through the International Direct Investment Program. The International Direct Investment Program is a dividend reinvestment and direct purchase plan open to existing shareholders and new investor. Through the program, participants can buy initial and additional ADSs, sell ADSs and reinvest dividends all at low costs.
 
Back to top What is the difference between a Registered holder and a Beneficial ADR holder?
A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of record. A beneficial holder is one whose holdings are registered in a name other than their own, such as in the name of a broker, bank or nominee.
 
Back to top How can I change my address?
You can change your address by calling Citi's Shareholder Services (1-877-248-4237) or by completing and mailing the tear off portion of your account statement.
 
Back to top How can I replace a lost certificate?
If your certificate is lost, stolen or destroyed, notify Citi immediately so that a stop transfer can be placed on the certificate. Citi will send you the forms necessary for issuing a replacement certificate. There is a premium charged which is approximately 2% of the market value of the shares (minimum fee of $20.00) to purchase the replacement indemnity bond.
 
Back to top How can I replace a lost check?
You can request the replacement of a lost check by calling Citi's Shareholder Services and selecting option 1. Upon authorization from you, a stop payment order will be placed against the original check and a replacement check will be issued to you. Please have your Social Security number ready when calling.
 
Back to top How can I obtain information about my account?
You can obtain information on your account such as your balance or the status of a dividend check by calling Citi's Shareholder Services. Representatives are available Monday through Friday from 8:30 am to 6:00 pm (EST).
 
Back to top How can I contact Citi's Shareholder Services?
Call toll-free at 1-877-CITI-ADR (248-4237). Shareholder Service Representatives are available Monday through Friday, 8:30am to 6:00pm Eastern time.

E-mail at: Citibank@shareholders-online.com

Write us at: Citibank N.A., Shareholder Services, 250 Royall Street, Canton, MA 02021

 
Back to top How are ADR dividends paid and taxed?
Dividends are paid in U.S. dollars and are generally taxable, just like dividends on U.S. shares. In addition, taxes may be withheld by the ADR company's local government. Depending on individual circumstances, foreign taxes withheld might be applied as a credit against U.S. taxes, or tax reclaim opportunities may be offered. When in doubt, consult your tax advisor.
 
Back to top How can I find out dividend and corporate action information on a company?
For dividend and corporate action information on issues where Citi is depositary, www.citi.com/dr is an excellent resource. Go to the "dr universe" section of our site and click on "Corporate Actions," or "Dividend Announcements" pages to search for information. You can also call Shareholder Services.
 
Back to top Can I have my dividends directly deposited into my bank account?
Through the Direct Deposit service, dividends are sent by Electronic Funds Transfer (EFT) directly to your designated bank account on the U.S. payable date. To find out if your company offers direct deposit of dividends and to request an Authorization Form, please contact Citi's Shareholder Services either by phone or by e-mail.