The negotiable securities known as American Depositary Receipts (ADRs) are issued by a bank and represent shares in a non-U.S. company.
These are listed in U.S. dollars, can be traded on national exchanges as well as the Over-The-Counter (OTC) market, and typically represent a number of foreign shares for one ADR.
Are ADRs regarded as international securities?
ADRs are a type of equity security designed to make foreign investing simpler for American investors.An American broker or bank issues an ADR. It represents one or more shares of stock in a foreign company that that bank owns and trades on the foreign company's home stock market.
What sets ADR and ADS apart from one another?
Foreign companies are able to list their shares on U.S. stock exchanges with the assistance of an American depositary receipt (ADR).The equity share of a foreign-based company that is denominated in U.S. dollars and is available for purchase on an American stock exchange is known as an American depositary share (ADS).
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