American Depository Receipt

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American Depository Receipt

A certificate issued by an American bank representing a share of a foreign stock that the bank holds in trust but that is traded on an American stock exchange. An American depository receipt is dollar-denominated and entitles the bearer to any dividends and other benefits associated with the stock underlying it. ADRs can be traded like any other security. ADRs shield investors from foreign exchange risk and any applicable tariffs they would have had to pay if they had bought the stock outright. They also exempt the investor from any other requirements the foreign exchange authority might have levied. See also: International 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.

References in periodicals archive ?
has introduced a sponsored American Depository Receipt (ADR) program in the United States.
Samson's American Depository Receipts (ADRs) are traded on the NYSE Euronext Exchange under the symbol "SSN", and, each ADR represents 20 fully paid Ordinary Shares of Samson.
Clearance, including American Depository Receipts (ADRs), clearance & collateral management (CCM), securities collateral management (SCM), government and equity services, headed by Liz Nolan.
NEW YORK -- Notice is hereby given that a class action lawsuit was filed on March 18, 2005 in the United States District Court for the Southern District of New York, on behalf of all persons who purchased American Depository Receipts ("ADRs") of AstraZeneca, PLC ("AstraZeneca") (NYSE:AZN) between April 2, 2003 and October 8, 2004, inclusive (the "Class Period").
NEW YORK -- A class action lawsuit was filed in the United States District Court for the District of Massachusetts, on behalf of all persons who purchased American Depository Receipts ("ADRs") of AstraZeneca, PLC ("AstraZeneca") (NYSE:AZN) between April 2, 2003 and October 11, 2004, (the "Class Period").

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