What is an American Depositary Receipt (ADR)?

What is an American Depositary Receipt (ADR): A certificate issued by a U.S. bank representing shares in a foreign stock traded on a U.S. stock exchange.

Category: Type of company stock share

How is an American Depositary Receipt (ADR) Used: ADRs are an easy way for U.S. investors to invest in certain foreign companies. Without the use of ADRs, it could be difficult for U.S. investors to trade in many foreign stocks directly.

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