American Depositary Receipt: Introduction and Definition

Overview: An American Depositary Receipt (or ADR) represents 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 buy shares in foreign companies without undertaking cross-border transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.

Contents
1 Types of ADR programs
1.1 Unsponsored shares
1.2 Level I
1.3 Level II (listed)
1.4 Level III (offering)
1.5 Restricted programs
2 Sourcing ADRs
3 See also
4 External links

Tags: American Depository Receipt, ADR, Introduction, Definition
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