Encyclopedia of Investment Terminology

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American Depository Receipt [ADR]

The holder of An American Depository Receipt has ownership on a non-US company. The use of American Depository Receipts or ADR makes it easy to buy and sell stock of foreign companies in U.S. stock exchanges.

An ADR is issued by an American Depositary Bank. ADRs are traded in U.S. dollars, and pay dividends in U.S. dollars.


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