sponsored American Depositary Receipt

Sponsored ADR

An American Depositary Receipt issued with the knowledge and cooperation of the company whose stock backs it. Unlike other ADRs, which simply give the monetary benefits of ownership, sponsored ADRs are treated just like common stock, complete with voting rights, only denominated in the U.S. dollar. In order for an ADR to trade on the New York Stock Exchange, it must be sponsored. See also: International depositary receipt.

sponsored American Depositary Receipt

An American Depositary Receipt in which the company whose shares are held in custody has direct involvement in issuance of the ADRs. The foreign company registers the receipts with the Securities and Exchange Commission and chooses a single depositary bank. Holders of sponsored ADRs have all the rights of common stockholders, including the right to receive reports, the right to vote, and the right to receive dividends. Compare unsponsored American Depositary Receipt.