ADR Explained Unlock Global Markets with American Depositary Receipts

34825 reads · Last updated: November 25, 2025

An American Depositary Receipt (ADR) is a financial instrument that represents shares in a foreign company and trades on U.S. financial markets. ADRs are issued by U.S. banks and can be traded on U.S. stock exchanges or over-the-counter markets. Each ADR typically represents a specific number of shares in the foreign company. ADRs allow U.S. investors to invest in foreign companies conveniently without having to purchase foreign stocks directly. ADRs provide foreign companies with access to U.S. capital markets while offering U.S. investors a wider range of investment opportunities.

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