ADR Conversions

An ADR trades like a stock but is composed of ordinary shares of a foreign corporation. ADRs provide a convenient and cost-effective way to buy foreign shares without incurring foreign tax obligations on each transaction. While ADR prices tend to follow the price of the foreign underlying shares, prices may diverge to create an arbitrage opportunity.

Our Voluntary Election Tool provides a simple process for converting ADRs into the underlying foreign shares. To access the Voluntary Election Tool, log in to Portal and click the Conversions tab. Additional information on using the Voluntary Election Tool is available in our Knowledge Base.

Note that the number of ordinary shares that make up each ADR varies and the ratio of shares to ADR is indicated by the ADR ratio. For example, a ratio of 2:1 indicates two ordinary shares per one ADR. If the shares were trading at USD 35.00, the price of the ADR would likely be around USD 70.00.

For non-supported ADRs, submit an Inquiry Ticket using the Secure Message Center in Portal.