American Depositary Receipts
A mechanism designed to facilitate trading in shares of non-US companies in the US stock markets. The main purpose is to create an instrument which can easily be settled through US stock market clearing systems.
USA
A negotiable certificate that trades in the US market and represents an ownership interest in a non-US company's debt or equity securities. An ADR represents one or more (or a fraction) of the underlying securities. A US depositary bank issues ADRs after the underlying securities have been delivered to the depositary's local custodian bank in the non-US company's home market.
Historically ADRs have been used to make it easier for US investors to invest in non-US companies (they are denominated in US dollars and pay dividends in US dollars). ADRs can be traded like other securities, either on a securities exchange or in the over-the-counter market, if they meet the listing or trading requirements of those markets.
The terms ADRs and ADSs (American Depositary Shares) are often used interchangeably, although formally an ADR is the physical certificate that represents an ADS. Global Depositary Receipts (GDRs) are depositary receipts, including ADRs, that are issued in one or more markets outside a company's home market.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • American Depositary Receipts — Certificates issued in the USA representing the right to ownership of shares in a UK (or other foreign) company. A bank will buy shares in a UK company and issue receipts into the USA in respect of those shares. Typically, one ADR will represent… …   Financial and business terms

  • American Depositary Shares — (ADSs) Shares evidenced by American Depositary Receipts (ADRs). ADSs are issued by a depositary bank and represent one or more shares of a non US issuer held by the depositary bank. The main purpose of ADSs is to facilitate trading in shares of… …   Law dictionary

  • American Depositary Receipt — Als American Depositary Receipt (ADR, oft auch American Depository Receipt oder American Depositary Share) werden auf Dollar lautende, von US amerikanischen Depotbanken (depositary banks) in den USA ausgegebene Aktienzertifikate bzw.… …   Deutsch Wikipedia

  • American Depositary Share — Ein American Depositary Receipt (ADR, oft auch American Depository Receipt oder American Depositary Share) ist ein Hinterlegungsschein und somit ein Zertifikat, das von einem US amerikanischen Kreditinstitut ausgestellt wird, das die… …   Deutsch Wikipedia

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  • American depositary receipt — ( ADR) Trust receipts equal to a specific number of shares of corporate stock issued in a foreign country. ADRs are sold and traded in the United States. American Banker Glossary * * *    ► See ADR. * * * American Depositary Receipt UK US noun… …   Financial and business terms

  • American Depositary Receipt — n. a receipt representing foreign shares of stock held on deposit in an American bank: receipts are denominated in U.S. dollars and traded on American exchanges: also ADR * * * …   Universalium

  • American Depositary Receipt — n. a receipt representing foreign shares of stock held on deposit in an American bank: receipts are denominated in U.S. dollars and traded on American exchanges: also ADR …   English World dictionary

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  • American Depositary Receipt — An American Depositary Receipt (or ADR) represents the ownership in the shares of a foreign company trading on US financial markets. The stock of many non US companies trades on US exchanges through the use of ADRs. ADRs enable US investors to… …   Wikipedia

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