ADR

Definition

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.

Use ADR in a sentence

You should always try to get an ADR any time that you are making a very big trade for your records.

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The ADR was especially useful to the American who wanted to travel and invest abroad in companies he was interested in.

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When my company decided to invest in a company operating in China, we were not able to buy stock directly but could only invest in their ADR shares that were traded on American stock exchanges.

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