American Depositary Receipt - ADR

外汇网2021-06-19 16:34:08 36

A negotiable certificate issued by a U.S. bank repsenting a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.

Taobiz explains American Depositary Receipt - ADR

This is an excellent way to buy shares in a foreign company while realizing any pidends and capital gains in U.S. dollars. However, ADRs do not eliminate the currency and economic risks for the underlying shares in another country. For example, pidend payments in euros would be converted to U.S. dollars, net of conversion expenses and foreign taxes and in accordance with the deposit agreement. ADRs are listed on either the NYSE, AMEX or Nasdaq.

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