Business, Legal & Accounting Glossary
n. called in the banking trade an ADR, it is a receipt issued by American banks to Americans as a substitute for actual ownership of shares of foreign stocks. ADRs are traded on American stock exchanges and over-the-counter easily without the necessity of trading the foreign shares themselves.
An American Depository Receipt (ADR) is a negotiable, registered certificate representing a specific number of corporate stocks in a non-U.S. company. An ADR documents the holder’s beneficial ownership of foreign stock held in trust by a foreign branch or correspondent of an American bank. Introduced in 1927, an ADR provides the American investor with the opportunity for diversification into select global securities without the usual hassles like foreign currency conversions and safekeeping charges. An ADR is quoted in US dollars on the major US exchanges or over-the-counter and pays dividends in US dollars.
ADR is offered as:
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This glossary post was last updated: 26th April, 2020 | 1 Views.