Define: American Depositary Receipt

UK Accounting Glossary

Definition: American Depositary Receipt


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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.


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