An American depositary receipt (ADR) is a negotiable security that represents securities of a non-US company that trade in the US financial markets. Securities of a foreign company that are represented by an ADR are called American depositary shares (ADSs).
Shares of many non-US companies trade on US stock exchanges through ADRs. ADRs are denominated and pay dividends in US dollars and may be traded like regular shares of stock. Over-the-counter ADRs may only trade in extended hours.
The first ADR was introduced by J.P. Morgan in 1927 for the British retailer Selfridges.
Read more about American Depositary Receipt: Depositary Receipts, ADR Programs (facilities), Sourcing ADRs, ADR Termination
Famous quotes containing the words american and/or receipt:
“The mystical nature of American consumption accounts for its joylessness. We spend a great deal of time in stores, but if we don’t seem to take much pleasure in our buying, it’s because we’re engaged in the acts of sacrifice and self-definition. Abashed in the presence of expensive merchandise, we recognize ourselves ... as supplicants admitted to a shrine.”
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“You must think I am a high-priced man.... Fifteen dollars is enough for the job. I send you a receipt for fifteen dollars, and return to you a ten-dollar bill.”
—Abraham Lincoln (1809–1865)