Business, Legal & Accounting Glossary
A security that is backed by shares of stock held on deposit at a U.S bank. See holding company depositary receipts (HOLDRs); American Depositary Receipt.
Depositary Receipt (DR) was created in 1927 to aid US investor who wished to invest in non-US corporations.
A depositary receipt is a negotiable certificate of ownership of shares in a foreign company traded in the USA through a US depository bank. Each depositary receipt represents a specific multiple or fraction of the underlying shares in the custody of the US bank’s foreign branch or its correspondent. The depositary receipt is publicly traded in either the over-the-counter market (Level-One Depositary Receipt) or on a national stock exchange (American Depositary Receipt). A depositary receipt can also be privately placed to Qualified Institutional Buyers (Rule 144A ADR). A US holder of the depositary receipt gets all benefits of foreign diversification and earns dividends in US dollars without incurring foreign custodial charges. Also, public trading of a depositary receipt is subject to trading, settlement, and reporting rules like any other US security. The underlying stocks in a depositary receipt are subject to foreign tax withholding in their country of origin.
safekeeping certificate
European Depositary Receipt
portfolio depositary receipt
American Depositary Receipt
American depositary receipt (ADR) fees
Global Depositary Receipt
Chinese Depositary Receipt (CDR)
holding company depositary receipts (HOLDRs)
American depositary receipt (ADR) ratio
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This glossary post was last updated: 29th October, 2021 | 0 Views.