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 American spring is by no means so agreeable as the American autumn; both move with faltering step, and slow; but this lingering pace, which is delicious in autumn, is most tormenting in the spring.”
—Frances Trollope (17801863)
“We have the receipt of fern-seed, we walk invisible.”
—William Shakespeare (15641616)