Back American Depositary Receipt German American Depositary Receipt Spanish رسید سپرده آمریکایی Persian Talletustodistus Finnish American depositary receipt French Admháil Taiscí Mheiriceánach Irish American depositary receipt Italian 米国預託証券 Japanese 미국 예탁 증권 Korean Американска депозитарна потврда Macedonian
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An American depositary receipt (abbreviated ADR, and sometimes spelled depository) is a negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets.[1]
Shares of many non-U.S. companies trade on U.S. stock exchanges through ADRs, which are denominated and pay dividends in U.S. dollars, and may be traded like regular shares of stock.[2] ADRs are also traded during U.S. trading hours, through U.S. broker-dealers. ADRs simplify investing in foreign securities because the depositary bank "manage[s] all custody, currency and local taxes issues".[3]
The first ADR was introduced by J.P. Morgan in 1927 for the British retailer Selfridges on the New York Curb Exchange, the American Stock Exchange's precursor.[4]
They are the U.S. equivalent of a global depository receipt (GDR). Securities of a foreign company that are represented by an ADR are called American depositary shares (ADSs).
- ^ Staff, Investopedia (18 November 2003). "American Depositary Receipt - ADR". Retrieved 17 June 2017.
- ^ Sikonathi Mantshantsha (22 March 2013). "American Depositary Receipts: Foreign investment made easy". Financial Mail.
- ^ "How an ADR Works and the Value for Companies & Investors". OTC Markets Group. Retrieved 18 March 2015.
- ^ "JPMorgan Celebrates 80th Anniversary of the ADR". JPMorgan Chase & Co. April 27, 2007. Archived from the original on April 2, 2015. Retrieved March 18, 2015.