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 train was crammed, the heat stifling. We feel out of sorts, but do not quite know if we are hungry or drowsy. But when we have fed and slept, life will regain its looks, and the American instruments will make music in the merry cafe described by our friend Lange. And then, sometime later, we die.”
—Vladimir Nabokov (1899–1977)
“We have the receipt of fern-seed, we walk invisible.”
—William Shakespeare (1564–1616)