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Definition: ADR stands for "American Depository Receipt" and it's essentially stock of a foreign company held by a bank or trust. ADR's allow US residents to easily purchase shares in companies in other countries. Typically, an investor who wants to invest in a European stock (for example), would need a European investment account to do so. ADR's allow investors to bypass this and buy the stock directly in the US.
TeenAnalyst Advice: ADR's are very convenient ways for US investors to buy international stocks. For example, Nokia is a company not based in the United States but you can still buy stock in it through its ADR that is traded on American exchanges.Most ADR's give investors the same rights as a typical American stock, including the right to receive dividends and to vote. |
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