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What is American depositary receipt (ADR)? adityatrading.in

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Prakash M 8 months ago in Finance 0

A American Depository Receipt (ADR) can be described as an exchangeable document issued by a U.S. depositary bank that represents a specific number of shares in the shares of a foreign-owned company (usually one share). The ADR can be traded on US stock exchanges as any other stock within the United States. ADRs allow American investors to buy shares of foreign companies that normally are not accessible to investors in the US. Foreign companies also gain since ADRs enable them to draw American investors and financiers without the hassle and expense of listing on US exchanges.

 

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