ADRS merely represent SHARES in a corporation that is incorporated outside the U.S. A U.S. bank holds the underlying foreign security, known as Depositary Shares, in one of its branches abroad. A negotiable receipt covering the foreign Depositary Shares is then issued and traded in the U.S. (The Morgan Guaranty Trust Company and the Bank of New York are large issuers of ADRS.) The ADR holders retain almost all of the rights that shareholders of the underlying securities do, but dividends and share pricing are in U.S. dollars. In the past, ADR trading was done almost exclusively on the OVER-THE-COUNTER (OTC) market, but both NASDAQ and the NYSE now have numerous ADR listings.
ADRs are securities offered by non-U.S. companies who want to list on an American exchange. Each ADR represents a certain number of a company's regular shares.
offered by non-US companies wishing to list on a US exchange.
Shares of foreign companies that trade in the United States. Banks hold the shares and issue certificates that give the holder a right to take possession. However, the stock of these foreign companies often is not registered through a U.S. stock exchange. This arrangement can allow a multinational company to have an international shareholder base without being listed on several stock exchanges.
ADRs are a convenient way for domestic investors to own shares in foreign companies. Denominated in US dollars, ADRs allow American investors to invest in a foreign company. However, ADRs are also traded in London.
Negotiable receipt that represents ownership of a foreign company's stock that is held in trust by a US bank.
A negotiable receipt representing a specific number of equity shares in a foreign corporation. ADRs trade in American dollars in the American securities market like domestic equities.
Certificates issued by a U.S. Depositary Bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored," the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADR's. "Unsponsored" ADR's do not receive such assistance. ADR's carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American Depositary Shares (ADS) are a similar form of certification.
ADRs are negotiable receipts for the securities of a foreign company that are kept in the vaults of an American bank, allowing Americans to trade the foreign securities in the United States while accruing any dividends and capital gains.
Receipt for shares of foreign-based companies that entitle the shareholder to all dividends and capital gains. ADRs allow Americans to buy shares of foreign-based corporations' securities at American Exchanges instead of having to go to overseas exchanges.
Shares of non-U.S. companies that trade in the U.S. stock market. American depositary receipts, or ADRs, offer distinct advantages to the U.S. investor. First, they require no complex currency transactions as they can be purchased in U.S. dollars. Also, most ADR companies are required to report financial details of their operations in accordance with generally accepted accounting principles. That makes their earnings more transparent and less subject to manipulation or fraud.
Certificates which represent a certain number of shares of a foreign stock, traded on U.S. stock exchanges as any other security is traded, but with the underlying foreign stock kept at U.S. banks in foreign countries.
Negotiable share certificates issued by major US banks, related to non-American shares deposited with them. ADR's are generally issued in a ratio of 1:1.