unsponsored American Depositary Receipt

unsponsored American Depositary Receipt

An American Depositary Receipt representing shares of a foreign company not directly involved in issuance of the ADR. Unsponsored ADRs are originated by a bank(s) that independently purchases the foreign firm's shares, holds the shares in trust, and sells the ADRs through brokerage firms. The depositary bank rather than holders of the ADRs retains the right to vote shares held in trust. Compare sponsored American Depositary Receipt.