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.

​ Was this Helpful? YES  NO 4 people found this helpful.

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

​ Was this Helpful? YES  NO 9 people found this helpful.

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.

​ Was this Helpful? YES  NO 6 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z