Unsponsored American Depository Receipt

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Unsponsored American Depository Receipt

An American Depository Receipt issued without the knowledge or cooperation of the company whose stock backs it. Unlike other sponsored ADRs, which are treated just like common shares denominated in the U.S. dollar, an unsponsored ADR simply gives the monetary benefits of ownership. That is, the bank issuing the ADR pays out dividends as if it were common stock, but the ADR does not carry voting rights. Unsponsored ADRs may not be traded on the New York Stock Exchange, and are usually traded over-the-counter. See also: International depositary receipt.
References in periodicals archive ?
SEC rule amendment regarding unsponsored American depositary receipts and the fact that more than $1 billion of these new programs have been issued since October 2008," said Michael Cole-Fontayn, chief executive officer of The Bank of New York Mellon's Depositary Receipt Division.
In March, The Bank of New York was selected as successor depositary for the sponsored and unsponsored American depositary receipts formerly serviced by HSBC Bank USA.
The purchase represents approximately 90 unsponsored American Depositary Receipts of foreign securities located in Germany, Hong Kong, Italy, Japan, Mexico, Singapore, and the United Kingdom.