American Depositary Receipt

Business, Legal & Accounting Glossary

Definition: American Depositary Receipt

American Depositary Receipt

Quick Summary of American Depositary Receipt

An American Depositary Receipt (also known as an ADR) is a negotiable certificate of title to a number of shares in a non-US company which are deposited in an overseas bank.

What is the dictionary definition of American Depositary Receipt?

Dictionary Definition

An American Depositary Receipt (ADR) is a receipt issued by a US bank to a member of the US public who has bought shares in a foreign country.

The depositary certificates are denominated in US dollars and may be traded as security in the US markets.

ADR’s pose the advantages of providing a reduction in  administration costs and an avoidance of stamp duty on each transaction.

Full Definition of American Depositary Receipt

A negotiable certificate issued by a U.S. bank representing a specific number of shares of a foreign stock traded on a U.S. stock exchange. ADRs make it easier for Americans to invest in foreign companies, due to the widespread availability of dollar-denominated price information, lower transaction costs, and timely dividend distributions.

Synonyms For American Depositary Receipt


Related Phrases

participatory note
unsponsored ADR
Sponsored ADR
global shares
NYSE Amex Composite Index
depositary receipt
Global Depositary Receipt
American depositary receipt (ADR) ratio
American depositary receipt (ADR) fees

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
American Depositary Receipt. Payroll & Accounting Heaven Ltd.
August 16, 2022
Chicago Manual of Style (CMS):
American Depositary Receipt. Payroll & Accounting Heaven Ltd. (accessed: August 16, 2022).
American Psychological Association (APA):
American Depositary Receipt. Retrieved August 16, 2022
, from website:

Definition Sources

Definitions for American Depositary Receipt are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 1st November, 2021 | 0 Views.