ADR

Fancy Way to Say: American Depositary Receipt, a vehicle used to trade the stock of a foreign company ADRs are negotiable certificates held in a U.S. bank which represent a specific number of shares of a foreign stock. They trade on a U.S. stock exchange. ADRs make it easier for Americans to invest in foreign companies, due to the widespread availability of dollar-denominated price information, lower transaction costs, and timely dividend distributions.

» Stock Exchange Jargon