ADR Definition Wednesday, September 25, 1:03 PM ET
The acronym ADR stands for American Depositary Receipt, and refers to a type of publicly traded security priced in US dollars that is actually a certificate representing a specified number of shares of a foreign stock traded on a foreign exchange in another currency.
By trading ADRs, US investors can gain portfolio exposure to foreign companies, without having to have access to foreign exchanges or having to exchange US currency into a foreign currency. If the foreign company pays a dividend, it will do so in the foreign currency, which is then converted into US dollars and paid out to the ADRs net of any currency conversion expenses and taxes.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.
X
Wait! Don't leave yet.
Want to receive our latest research absolutely free?
⤹
Click the button below for your complimentary copy of Your Early Retirement Portfolio: Dividends Up to 9.5%—Every Month—Forever.
You'll discover the details on 4 stocks and funds that pay you massive dividends as high as 9.5%.