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:
“Of all the errors which can possibly be committed to the education of youth, that of sending them to Europe is the most fatal. I see [clearly] that no American should come to Europe under 30 years of age.”
—Thomas Jefferson (1743–1826)
“We have the receipt of fern-seed, we walk invisible.”
—William Shakespeare (1564–1616)