Offbeat Offerings: American Depositary Receipts
by Cara Scatizzi
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 companys home country, subject to the terms specified on the ADR certificate.
...To continue reading this article you must be registered with AAII.
to read this article and receive access to future AAII.com articles.
Already registered with AAII? Login to read the rest of this article.