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ADR
(American Depositary Receipt)
An ADR (American Depositary Receipt) is a certificate issued by a U.S. bank representing shares in a foreign company, traded on American stock exchanges like the NYSE or NASDAQ. ADRs enable U.S. investors to buy foreign stocks without dealing with foreign market regulations or currency conversions.
There are three levels of ADRs with varying SEC reporting requirements. As of 2023, over 2,000 ADRs from 70+ countries trade in U.S. markets, including major companies like Nestlé and Samsung. ADRs eliminate many complexities of international investing while providing exposure to global growth opportunities. Similar instruments exist in other markets, such as GDRs in Europe.
There are three levels of ADRs with varying SEC reporting requirements. As of 2023, over 2,000 ADRs from 70+ countries trade in U.S. markets, including major companies like Nestlé and Samsung. ADRs eliminate many complexities of international investing while providing exposure to global growth opportunities. Similar instruments exist in other markets, such as GDRs in Europe.