20 Investments: American Depository Receipt (ADR)

Introduced to the financial markets in 1927, an American Depository Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on U.S. stock markets just like regular stocks and are issued/sponsored in the U.S. by a bank or brokerage.

This article provides an introduction to ADRs, its objectives and risks.

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Source: Investopedia