American Depository Receipt ("ADR")

What is an ADR?
An American Depository Receipt ("ADR") is a physical certificate evidencing ownership of American Depositary Shares ("ADSs"). The term is often used to refer to the ADSs themselves.

What is an ADS?
An American Depositary Share ("ADS") is a U.S. dollar denominated form of equity ownership in a non-U.S. company. It represents the foreign shares of the company held on deposit by a custodian bank in the company's home country and carries the corporate and economic rights of the foreign shares, subject to the terms specified on the

ADR certificate.
One or several ADSs can be represented by a physical ADR certificate. The terms ADR and ADS are often used interchangeably. ADSs provide U.S. investors with a convenient way to
invest in overseas securities and to trade non-U.S. securities in the U.S. ADSs are issued by a depositary bank, such as JPMorgan Chase & Co. They are traded in
the same manner as shares in U.S. companies, on the New York Stock Exchange ("NYSE") and the American Stock Exchange ("AMEX") or quoted on NASDAQ and the over-the- counter ("OTC") market. Although ADSs are U.S. dollar denominated securities and
pay dividends in U.S. dollars, they do not eliminate the currency risk associated with an investment in a non-U.S. company.

What is a GDR?
Global Depositary Receipts ("GDRs") are similar to ADRs but differ in that they allow issuers to raise capital in two or
more markets simultaneously, thus broadening their shareholder base. The GDR is generally structured as a
combination of a Rule 144A ADR, which trades in the U.S. private placement market, and a public offering outside the
United States under Regulation S.

What are the benefits of holding ADRs?
ADRs eliminate many of the obstacles of holding non-U.S. securities since they trade and settle according to U.S.
market practices, are quoted and traded in dollars and pay dividends in dollars. They eliminate custodian safekeeping
charges in the issuer's home country and facilitate prompt dividend payments and corporate action notifications.

What is an ADR ratio?
The ADR ratio gives the number of foreign shares represented by one ADS. The ratio is typically depicted as, for example, "1 : 3", meaning that one ADSs represents 3
foreign shares. You can find all ADR ratios in our ADR Universe.

How do I convert my foreign shares into a adr  and vice versa?
You can transfer your foreign shares to J.P. Morgan's custodian bank in the issuer's home country. Upon receipt
of the foreign shares, JPMorgan Chase & Co. will issue ADRs to you, representing the newly deposited shares. To convert your ADRs back into foreign shares, you should instruct your broker to cancel the ADRs, and provide him or her with complete delivery instructions in the issuer's home country. Refer to Mechanics of issuance and cancellation
for a description of how J.P. Morgan issues and cancels ADRs. Shares The term "shares" in these FAQs refers to American Depositary Shares (ADSs), Shares of New York Registry, New York Shares and Global Shares, all of which represent shares of non-U.S. companies that trade in the U.S. stock
market.