| American Depository Receipt - ADR | |
 A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas, and help to reduce administration and duty costs on each transaction that would otherwise be levied. |
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 This is an excellent way to buy shares in a foreign company while realizing any dividends and capital gains in U.S. dollars. However, ADRs do not eliminate the currency and economic risks for the underlying shares in another country. For example, dividend payments in euros would be converted to U.S. dollars, net of conversion expenses and foreign taxes and in accordance with the deposit agreement. ADRs are listed on either the NYSE, AMEX or Nasdaq. |
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 ADR Basics Tutorial - Thanks to American depository receipts, investors now have a world of investing opportunities to choose from. Investing Beyond Your Borders - Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks. What Are Depository Receipts? - Learn about a security that allows you to invest in a foreign company through your local exchange. |
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