American Depositary Share


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American Depositary Share (ADS)

Foreign stock issued in the US and registered in the ADR system.

American Depository Share

A certificate issued by an American bank representing a share of a foreign stock the bank holds in trust but that is traded on an American stock exchange. An American depository share is dollar-denominated and entitles the bearer to any dividends and other benefits associated with the single share underlying it. In other words, an American depository share is a single share of an American depository receipt.

American Depositary Share (ADS)

A negotiable U.S. depositary share that represents securities of a non-U.S. company being held in custody. A custodian bank in the issuer's home country holds the foreign shares. An ADS is traded in U.S. dollars in the U.S. markets, and dividends are paid in U.S. dollars. American Depositary Shares are traded in lieu of the underlying foreign securities that remain in custody. See also sponsored American Depositary Receipt.
Case Study Trading of American Depositary Shares boomed in the early 2000s, largely because of the increased number of ADSs available to U.S. investors. Foreign companies issued American Depositary Shares as part of their effort to raise funds in the booming U.S. capital markets. Some ADS issues originated from foreign-based corporations with U.S. operations that wanted to offer dollar-denominated ownership shares to their U.S. employees. Foreign companies sometimes issued ADSs to use in acquiring U.S. firms in equity transactions. For example, British Petroleum paid for its acquisition of Chicago-based Amoco Corporation with newly issued American Depositary Shares. These shares offer U.S. investors the opportunity to achieve international diversification without the investors being required to convert dollars for a foreign currency and vice versa. American Depositary Shares also offer liquidity that often surpasses the liquidity of the same firm's ordinary shares. Actively traded ADSs in U.S. markets include Alcatel (France), BP (United Kingdom), Ericsson (Sweden), Nokia (Finland), Royal Dutch Petroleum (Netherlands), and Telefonica (Spain).

American depositary share (ADS).

When a company based overseas wants to sell its shares in the US markets, it can offer them through a US bank, which is known as the depositary.

The depositary bank holds the issuing company's shares, known as American depositary shares (ADSs), and offers them to investors as certificates known as American depositary receipts (ADRs). Each ADR represents a specific number of ADSs.

ADRs are quoted in US dollars and trade on US markets just like ordinary shares. While hundreds are listed on the major exchanges, the majority are traded over the counter, usually because they're too small to meet exchange listing requirements.

References in periodicals archive ?
8m from private placement of restricted American Depositary Shares
The British headquartered financial services provider issued 1,450,000 Series A American Depositary Shares in 2005 for a consideration of USD1,000 each along with Series A American Depositary Shares, each of which represents one-fortieth of a Series A Dollar Preference Share, and were listed on the New York Stock Exchange.
OTCBB: SRGYY), a global provider of photovoltaic (PV) solutions for business, residential, government, utility customers and investors, has received approval from Nasdaq for its application for the listing its American depositary shares on the Nasdaq Global Select Market.
Infosys (NYSE: INFY) said that the French Autorite des marches financiers (AMF) has approved the company's prospectus for admission of its American Depositary Shares for listing and trading on the professional segment of NYSE Euronext Paris, and has granted visa number 13-029, dated February 13, 2013, on the Prospectus.
Securities and Exchange Commission relating to a proposed offering of American Depositary Shares, or ADSs, of up to 13.
The issuance of the American Depositary Shares is expected to be exempt from Securities and Exchange Commission registration under Regulation S.
254,003,484 Ordinary Shares and 1,667,171 American depositary shares ("ADS"), each representing one Ordinary Share, have been tendered for acceptance or otherwise committed to or obtained by Valcon, collectively representing 98.
On April 29, 2006, the Company's Deposit Agreement dated October 1996 with The Bank of New York, under which the Company's American depositary receipts were issued, was terminated pursuant to a notice dated March 30, 2006 that was sent to the remaining holders of American depositary shares ("ADSs") evidenced by American depositary receipts of the Company.
65 million, mature in October 2008 and will be exchangeable at the option of the holders into the company's American Depositary Shares at a conversion price of $2.
LEVERKUSEN, Germany -- Dritte BV GmbH, a wholly owned subsidiary of Bayer Aktiengesellschaft (NYSE: BAY), announced today that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to its previously announced tender offer for all outstanding bearer shares of Schering Aktiengesellschaft (NYSE: SHR), including all bearer shares represented by American depositary shares (ADSs) has expired.
On November 28, 2005, O2Micro began trading American Depositary Shares (ADSs) on The Nasdaq National Market.
New York City time, on March 15, 2006, approximately 29 persons had tendered and not withdrawn a total of 688,243 American depositary shares.

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