ADRs offer U.S. investors a way to purchase stock in overseas companies that would not be available otherwise. Foreign firms also benefit, as ADRs enable them to attract American investors and capital without the hassle and expense of listing on U.S. stock exchanges.
An American depositary receipt (ADR) is a certificate issued by a U.S. bank that represents shares in foreign stock.
ADRs trade on American stock exchanges.
ADRs and their dividends are priced in U.S. dollars.
ADRs represent an easy, liquid way for U.S. investors to own foreign stocks.
