American Depositary Receipt (ADR) - Definition

A vehicle that effectively allows U.S. investors to hold shares in foreign companies. ADRS trade on exchanges like conventional securities. The sponsoring bank collects the dividends, local taxes and converts them into dollars for distribution to U.S. shareholders. It should be noted that adverse events are affected by both firm performance and changes in exchange rates.

Terms near "American Depositary Receipt (ADR)"

American Depositary Share
American Municipal Bond Assurance Corporation
American Option
American Stock Exchange
American-style option
Amortization method
Amortization of premium
Amortization schedule
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