An ADR is a negotiable U.S. certificate representing ownership of shares in an non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Also, the dividends are paid to investor in U.S. dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investor, and to provide a corporate finance vehicle for non-U.S. companies.

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.

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. LG Display ADR ration is 2:1.

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.

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 LM Ericsson Telephone Co., Nokia Corporation, CEMEX. You can find a complete list of companies with ADRs at, www.citibank.com/adr. Go to "Brokers", then click on "Universal Issuance Guide."

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.

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.

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.

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.

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.
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