This page refers to a method of listing the stock of a non-U.S. corporation on a U.S. exchange. For the hotel industry metric, see Average Daily Rate.
An American Depository Receipt, or ADR, is a receipt issued by American banks to domestic buyers as a substitute for direct ownership of stock in foreign companies. An ADR is a convenient way for companies whose stock is listed on a foreign exchange to cross-list their stock in the United States and make their stock available for purchase by U.S. investors.
Some ADRs are traded on major stock North American exchanges such as the Nasdaq Stock Market (NDAQ) and the New York Stock Exchange, which require these foreign companies to conform to many of the same reporting and accounting standards as U.S. companies. Other ADRs are traded on over-the-counter exchanges that impose fewer listing requirements.
Stock dividends and similar adjustments to the underlying shares are paid in cash or ADR dividends by the bank.
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