American Depositary Receipt is a document issued by an American bank to US citizens, making them unregistered shareholders of companies in foreign countries. The document allows them to receive 5 American Depositary Receipt dividends from their investments, and ADRs can themselves be bought or sold. Buying and selling ADRs is easier for American investors than buying or selling the actual shares themselves, as it avoids stamp duty and can be carried out in dollars without incurring exchange costs.
Definition