American Depositary Receipt Definition

American Depositary Receipt

Definition

ADR. 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.

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American Depositary Receipt is ...
... part of the Global and Stocks subjects.

Related Terms

Global Depositary Receipt - More

receipt -

Sponsored ADR - More

unsponsored ADR, ADR, ADS, American Depositary Share, depositary receipt, European Depositary Receipt, GDR, participatory note, international market index, Kaffirs