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American Depositary Receipts

An ADR is a domestically traded security that represents a claim to shares of a foreign stock held in the vault of a U.S. commercial bank. An ADR entitles the shareholder to all dividends and capital gains. ADRs have the same voting rights as the ordinary shares they represent.

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What are the risks of ADRs?

Foreign investments involve greater risk than U.S. investments including political developments and currency fluctuations. These risks may be magnified in emerging markets.

How can I trade ADRs?

ADRs trade like U.S. issues and are quoted in American dollars. You can place ADR orders online for your Fidelity brokerage and brokerage retirement accounts (e.g., IRA, SEP-IRA, Keogh, etc.). Some ADRs are marginable.

How are ADR dividends paid?

Dividends are paid in American dollars but are still subject to foreign-tax withholding.

What are the tax implications of ADRs?

You may be able to avoid certain taxes involved in buying and selling securities in overseas markets. Consult a tax advisor for additional information.

Can I transfer and ship eligible ADR certificates?

Yes. To take physical possession of ADR certificates, contact a Fidelity representative at 800-544-6666.

What is the settlement price of an ADR?

An ADR may settle using a different price from the underlying foreign stock it represents, because:

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