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ADR/Global Capital Changes Daily on the Internet

With the increasing investor interest in global diversification of security holdings, there has been growing demand for a Capital Changes product that would provide coverage of non-U.S. companies. ADRs and Global stocks were selected because they are securities that are subject to SEC registration. As such, Capital Changes editors are therefore able to provide the same level of detailed information about corporate actions which have federal income tax consequences for U.S. shareholders necessitating specialized reporting of facts, figures, and tax treatment as found in the current Capital Changes products.

These securities trade in the U.S. on either the listed exchanges (New York Stock Exchange or the NASDAQ-American Stock Exchange) or Over the Counter (OTC).

An ADR is created when a security from a foreign market is deposited with a bank located in the United States (the depositary). Then the depositary bank issues certificates in the U.S. that represent and are backed by the deposited securities. It is these certificates that trade in the U.S.

Global stocks are securities that trade simultaneously in the U.S. and in their home country. At the moment almost all Global stocks are Canadian. Daimler Chrysler was the first major issue outside of Canada to use this structure and more are expected to follow.*

* Please note that foreign securities that trade only in their home countries are NOT within the scope of product coverage.

Benefits and Features
Features unique to ADR/Global Capital Changes Daily:

  • Includes CUSIP (R)* numbers for quick look-ups.
  • Data elements are organized into a matrix for ease of review and comparison.
  • Includes exchange rates and changes to the underlying share ratio or depository agreement.

    • Features shared by all Capital Changes products:

  • Experienced CCH editors with legal, tax and accounting backgrounds monitor publicly held companies, providing reports on all activities that might have tax consequences for shareholders.
  • The CCH Basis Factor™ makes it easy to calculate changes to basis resulting from capital changes.
  • Precise reporting of fair market values and changes in basis resulting from corporate actions allow subscribers to properly book a transaction.
  • Includes summaries of taxability provided by the company, its tax counsel, or its accountants regarding tax consequences of corporate distributions.
  • CCH explanations offer insight concerning complicated issues.

    • *CUSIP—Copyright 2000, American Bankers Association. CUSIP Database provided by the CUSIP Service Bureau, Standard & Poor's, a division of McGraw-Hill, Inc.