American Depositary Receipt - ADR

American Depositary Receipt - ADR
A negotiable certificate issued by a U.S. bank representing 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.

This is an excellent way to buy shares in a foreign company while realizing any dividends 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, dividend 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.

Investment dictionary. . 2012.

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  • american depositary receipt — noun Usage: usually capitalized A&D&R : a negotiable receipt that represents ownership of a foreign stock held in trust (as by the foreign branch of a United States bank) for an American citizen and that can be traded in dollars like shares of… …   Useful english dictionary

  • American Depositary Receipt Fees — Fees associated with the creating or releasing of ADRs from ordinary shares, charged by the commercial banks with correspondent banks in the international sites. Bloomberg Financial Dictionary …   Financial and business terms

  • American Depositary Share — An American Depositary Share ( ADS ) is a vehicle for foreign corporations to list their ordinary equity on an American stock exchange, such as the New York Stock Exchange or the NASDAQ. Foreign corporations listed in other markets are not… …   Wikipedia

  • depositary receipt — A certificate which gives the holder, ownership of a specified number of shares in a company that have been deposited with a financial institution Commonly known as DRs , Depositary Receipts are negotiable certificates that enable domestic… …   Financial and business terms

  • Depositary Receipt — A negotiable financial instrument issued by a bank to represent a foreign company s publicly traded securities. The depositary receipt trades on a local stock exchange. Depositary receipts make it easier to buy shares in foreign companies because …   Investment dictionary

  • European Depositary Receipt — Ein European Depositary Receipt (EDR) ist ähnlich dem American Depositary Receipt ein Hinterlegungsschein für Aktien, der auf Euro lautet[1]. Hintergründe Um Aktien die im Ausland nicht zugelassen sind in diesem handelbar zu machen, werden von… …   Deutsch Wikipedia

  • Global Depositary Receipt — Ein Global Depository Receipt (GDR) ist quasi die globale Form des Hinterlegungsscheins / depositary Receipts und somit ein Zertifikat, das das Eigentum einer Aktie verbrieft[1]. Inhaltsverzeichnis 1 Hintergründe 2 Geschichte 3 …   Deutsch Wikipedia

  • Global Depositary Receipt — (GDR) See American Depositary Receipts. Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

  • Chinese Depositary Receipt - CDR — A type of depositary receipt that is traded on Chinese stock exchanges. A CDR is a certificate issued by a Chinese bank that represents a pool of foreign equity that is traded on local Chinese exchanges. Foreign companies can use CDRs to allow… …   Investment dictionary

  • Global Depositary Receipt - GDR — 1. A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various… …   Investment dictionary

  • depositary — /dɪ pɒzɪtəri/ noun US a person or corporation which can place money or documents for safekeeping with a depository. ⇒ American Depositary Receipt (NOTE: Do not confuse with depository.) …   Dictionary of banking and finance