American depositary receipt (ADR)

1 topic · 1 source

Business› Finance

Personal Finance

Shares of hundreds of major overseas-based companies, including names such as British Petroleum, Sony, and Toyota, are traded as ADRs on US stock markets in US dollars.

ADRs are actually receipts issued by US banks that hold actual shares of the companies' stocks. They let you diversify into international markets without having to purchase shares on overseas exchanges or through mutual funds.

Cite this definition

APA
MLA
Chicago