Definitions

American Depository Receipt

Posted By: TradersLog

Securities issued by a U.S. bank that represent shares of a foreign company and are traded on a U.S. exchange. ADRs trade like normal stocks and are listed on either the NYSE, AMEX or Nasdaq. They normally trade in line with the stock of the parent company on its domestic exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas.

Related Links: adr.com

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