Definition: An American Depository Receipt is a certificate issued by a bank in the United States representing a certain amount of shares of a foreign company on a foreign exchange. They can be traded on American exchanges just as a domestic stock can be; they make foreign investment much easier.
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Also Known As: ADR
Examples: UBS is one of the premier Swiss Banks in the world. The company operates out of Switzerland, but wishes to have its stock trade on the New York Stock Exchange. Since they are incorporated outside of the United States, they must issue American Depository Receipts. These serve as shares of stock and are traded by investors on American exchanges.
Alternate Spellings: None
Common Misspellings: American Depositery Receit
Related Resources:
American Depository Receipts
ADRs - American Depositary Receipts - represent shares of stock in an overseas corporation and trade on US stock. They often represent an effecient and effective technique to invest in shares of overseas companies. Learn more about these on the About Stocks page.What is an ADR
Read about American Depository Receipts in this informative article.Definition - American Depository Receipt
Another definition from your About Guide to Day Trading
Elsewhere on the Web:
American Depository Receipt FAQ
Learn everything you want to know about American Depository Receipts in this FAQ.How to Buy an ADR - American Depository Receipts
Find out how to invest in ADRs from this Bank of New York site.Net Stock Direct
Here's a directory of international companies from outside the United States that have registered American Depository Receipts.
