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    Offbeat Offerings: American Depositary Receipts

    by Cara Scatizzi

    Offbeat Offerings: American Depositary Receipts Splash image

    An American depositary receipt (ADR) is a negotiable certificate that trades like a common stock and is issued by a U.S. bank; it represents shares of a non-U.S. publicly traded company. ADRs are priced in U.S. dollars, and dividends are paid out in U.S. dollars. The actual shares of the foreign company are held by a custodian bank in the company’s home country, subject to the terms specified on the ADR certificate.

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