AMERICAN DEPOSITARY RECEIPT
American Depositary Receipt: translation
( ADR)
certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored," the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADR."Unsponsored" ADRs do not receive such assistance. ADRs are subject to the same currency, political, and economic risks as the underlying foreign share. arbitrage keeps the prices of ADRs and underlying foreign shares, adjusted for the SDR/ordinary ratio essentially equal. American Depositary Shares ( ADS) are a similar form of certification. Bloomberg Financial Dictionary
————
( ADR) Euroclear Clearing and Settlement glossary
A negotiable certificate issued by a US bank representing a specific number of shares of a foreign stock traded on a US stock exchange. These certificates can be traded freely like any other security, either by exchange or in the over-the-counter market and can be used to raise capital. Euroclear Clearing and Settlement glossary
————
American Depositary Receipt ( ADR)
A receipt or certificate issued by a US bank that represents a specific number of shares of foreign-based corporations held by a US banking institution in the country of origin on behalf of an investor in the US. Exchange Handbook Glossary
* * *
► See ADR.
* * *
American Depositary Receipt UK US noun [C]
► FINANCE,
STOCK MARKET »
The stock would trade under an American Depositary Receipt program that was formed with the Bank of New York.