American Depository Receipts (ADRs) allow investors to buy shares of foreign companies. Buying an ADR is like buying a share of the foreign company, except the shares of the ADR are denominated and pay dividends in U.S. dollars instead of the currency of the foreign company’s country. A popular example is Royal Dutch Shell - the actual share trades on the Amsterdam Stock Exchange but an ADR can be bought on the NYSE under the ticker RDS.A.
What is an ADR?
Written by Mohamad Daou
Updated over 3 years ago