American Depositary Receipt

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American Depositary Receipt (ADR)

Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored," the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADR. "Unsponsored" ADRs do not receive such assistance. ADRs are subject to the same currency, political, and economic risks as the underlying foreign share. Arbitrage keeps the prices of ADRs and underlying foreign shares, adjusted for the SDR/ordinary ratio essentially equal. American depository shares (ADS) are a similar form of certification.

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 Depositary Receipt (ADR)

The physical certificate for an American Depositary Share. American Depositary Shares trade electronically, but only American Depositary Receipts can be delivered to an investor. American Depositary Shares and their companion American Depositary Receipts always exchange on a one-for-one basis. Although American Depositary Receipts and American Depositary Shares are different, the terms are frequently used interchangeably. See also sponsored American Depositary Receipt, unsponsored American Depositary Receipt.
Are foreign securities traded in U.S. markets?

Stocks of some, especially large, foreign companies traded in the U.S. markets are traded as American Depositary Receipts (ADRs). ADRs are receipts for the shares of a foreign corporation held by a U.S. depositary bank. The receipts are traded openly on the U.S. markets, and the owner (shareholder) is entitled to all dividends and capital gains. Each ADR represents a determined ratio of the foreign stock, and the price of the ADR corresponds to the price of the stock in the home market adjusted for this ratio.

ADRs traded in the U.S. markets will clear and settle in U.S. dollars. The depositary bank will also convert, for a small fee, any dividends to U.S. dollars.

Thomas M. Tarnowski, Senior Business Analyst, Global Investment Banking Division, Citigroup, Inc.—Salomon Smith Barney, New York, NY, and London, UK

American depositary receipt (ADR).

Shares of hundreds of major overseas-based companies, including names such as British Petroleum, Sony, and Toyota, are traded as ADRs on US stock markets in US dollars.

ADRs are actually receipts issued by US banks that hold actual shares of the companies' stocks. They let you diversify into international markets without having to purchase shares on overseas exchanges or through mutual funds.

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Sequans Communications (NYSE: SQNS) (the "company") has announced that on June 12, 2019, it received a notice from the New York Stock Exchange ("NYSE") that the company is not in compliance with the NYSE's continued listing standard with respect to the minimum average share price required by the NYSE because the average closing price of its American Depositary Shares had fallen below USD 1.00 per share over a period of 30 consecutive trading days, the company said.
Sequans announced that on June 12, it received a notice from the New York Stock Exchange that the company is not in compliance with the NYSE's continued listing standard with respect to the minimum average share price required by the NYSE because the average closing price of its American Depositary Shares had fallen below $1.00 per share over a period of 30 consecutive trading days.
Sports events company Wanda Sports Group Company Limited said on Friday that it has filed a Registration Statement on Form F-1 with the US Securities and Exchange Commission in connection with the planned initial public offering of American Depositary Shares (ADSs).
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Auto Business News-December 27, 2018--Link Motion to delist American Depositary Shares from NYSE
The offering was comprised of 3,725,000 American Depositary Shares, representing 26,075,000 Class A ordinary shares before the exercise of underwriters overallotment option.
Realm's American Depositary Shares trade on the Nasdaq Capital Market under the symbol "RLM." Each ADS represents 25 ordinary shares of Realm.
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In the registered direct offering, the company issued 2,431,746 American Depositary Shares (ADS) at a purchase price of USD1.45 per ADS.
Shareholders will be able to convert their ordinary shares to NASDAQ American Depositary Shares through their bank or broker.
International Resource News-January 25, 2017--Yanzhou Coal Mining plans to delist American Depositary Shares
and David MartA-nez, in the US for all outstanding class B Shares held by US holders and all outstanding American depositary shares of Argentinian telecommunications company Telecom Argentina S.A.

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