How to Buy International Stocks -- ADR's and Their Little Fees

It’s Stock Investing 101: When you buy shares in a company, you are buying an actual piece of the business. That’s you, a part-owner. Except, it turns out, when it comes to foreign-listed companies. Rather than buying the shares on the other country’s stock exchange -- which is more than a little complex -- most times, U.S. based investors will use American Depositary Receipts, ADRs, and never think about the difference.

One Rule Breaker Investing listener did start thinking about the difference though, because he noticed he was getting charged a small, but regular, fee just to hold onto those ADRs, and he was wondering why. In this mailbag segment of the podcast, Motley Fool co-founder David Gardner and analyst Emily Flippen explain the reason.
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[Marco-wzxw]

Great explanation! Before seeing this video I spent 3 hours studying Baidu's filings. It turns out that I could have just watched this 5 minute video for a perfect summary. It was a perfect summary anyway. Thanks!

[stringsnare]

thanks! I live in Canada and there is an ETF that is only listed in the London Stock Exchange I was interested in purchasing, so this helps me understand this.

[masterchecho]

Where do you pay the taxes after you sold an ADR position ? . Assuming you are in the US and buy an ADR from an Australian company listed in the US market. Thanks

[simplemente_humano]

I own Jumia, but I cannot find the F-6 form in the SEC website.

[shinexbritexeyes]

Any advice on what to do when an ADR is terminated?? I’ve been given the option to convert to ordinary shares, sell the shares, or do nothing. What happens in the event that I do nothing? Do they just pay out the value of the shares?

[TomBTerrific]

Seems strange that they can charge year after year rather than a one time fee at time of purchase.

[GianfrancoVivanco]

Should I buy ADR or normal stock for Sony?

[davidbasset]

can americans buy foreign companies listed on LSE or ASX directly instead of buying ADRs?

[mcanderson]

So, these are legit and ADRs are actual shares the only difference is that they are “‘international shares’’ ?

[rajgupta]

ADR or CDR prices must be fixed direct proprtion of 1/10th or 1/20th or 1/50th to be fair so that investor is placing orders based on One Share price. This does not makes sense one DR is is 1/23rd or one CDr equals to 1/37th for another stock. Developers must use brain to keep symmetry for sake of Clients as well as biddings.
I will say same situations in Call Options etc it should be 1/30th or 1/50th of share price fixed for every equity. Exchanges are coming up with funny ideas but do not makes sense for aan investor as they are trading on option price but hard to figure out option price vs stock prices for putting orders or biddings.
I hope my message is very clear for Security commissions.

[musicworldtreasures]

Otherwise it is another way to steal more from you! 😡😡

[dwork]

Little grubby hands stealing from you.