American Depository Receipt(redirected from American Depository Receipts)
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American Depository Receipt
American Depository Receipt (ADR)a certificate of ownership issued to an individual or company investor by a US bank which holds (on deposit) the investor's or company's STOCKS and SHARES. The ADR serves as proof of the ownership of the securities held by the bank and can be used as a negotiable instrument.
American Depository Receipts have been used extensively by UK companies wishing to encourage investment by US institutional investors. Such companies lodge a proportion of their shares with a US bank, which then issues depository shares which can be traded on the US stock market.