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 ?
Biotechnology company Can-Fite BioPharma (TASE:CFBI)(OTC:CANFY) reported on Monday the receipt of a FINRA quotation clearance of its Level 1 American Depository Receipts (ADRs).
Further, Yes Bank also plans to raise USD500m in one or more tranches in the latter half of this financial year through qualified institutional placement (QIP), American depository receipts (ADRs) or global depository receipts (GDRs).
In addition, approval was granted to a company for issuance of American Depository Receipts outside Pakistan.
said Wednesday it will list its American Depository Receipts on the New York Stock Exchange on Monday.
Agency broker and trading systems provider ConvergEx has added functionality to its ADR Direct technology to enable US buy-side clients to trade ordinary shares in Indonesia and Malaysia and convert the shares into American depository receipts (ADRs) in US dollars.
The Company successfully issued its American Depository Receipts ("ADRs") and H shares in New York and Hong Kong respectively.
said Wednesday the Nasdaq market has decided to delist its American Depository Receipts following the Japanese electronics giant's failure to submit necessary financial documents to U.S.
Its American Depository Receipts will trade on the over-the-counter market.
The company said that it plans to deregister after delisting its American Depository Receipts (ADRs).
In both cases, they had a brief investment in the foreign corporation evidenced by American Depository Receipts (ADRs).To offset a pre-existing capital gain, they purchased the ADRs and immediately sold them back to the seller, ex-dividend, resulting in capital losses.
Telecoms equipment maker Marconi Corporation Plc has announced that its equity will begin trading on the Nasdaq stock market in the form of American Depository Receipts under the ticker symbol MRCIY when trading opens in New York next Thursday.
An estimated one-tenth of Marconi shares will now be traded on the Nasdaq exchange through American Depository Receipts, a certificate of share ownership allowing investors to deal in non-US companies.

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