1. ADRs Introduction

Via APP

ADRs, or American depositary receipts (ADR) is a certificate of ownership of the American depositary shares (ADS). ADS are priced in US dollars and represent a specified number of shares of a foreign company's stock. The holder of an ADR has the right to convert the ADR to shares of the underlying asset stock.

ADRs are subjected to 30% capital gains tax unless the investor is from a country that has a tax treaty with the US. As the ADR is traded in the US it is subject to the US capital gains tax, regardless of where the underlying product is traded.