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:
“Do not be discouraged, if in a thousand instances you find your kindness rejected and wronged, your good evil-spoken of, and the hand you extend for the relief of others, cast insultingly away; the benevolence which cannot outlive these trials of its purity and strength, is not like the self-sacrifice of him, who went about doing good.”
—C., U.S. women’s magazine contributor. American Ladies Magazine, pp. 331-4 (July 1828)
“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)