American depositary receipt. A negotiable instrument issued by an American bank as a substitute for stock shares in a foreign-based corporation .” ADRs are the most common method by which foreign companies secure American shareholders. Companies that offer ADRs maintain a stock listing in their domestic market in their domestic currency, while the ADRs are held in U.S. dollars and listed on a U.S. stock exchange, usu. the New York Stock Exchange. The holder ofthe receipt is entitled to receive the specified securities upon presentation
ofthe ADR to the depositary institution - Abbr. ADR. Also termed American depository receipt. Cf. AMERICAN DEPOSITARY SHARE.
American depositary share. A foreign security that is exempt from reporting requirements and deposited in an American bank to be held for private sale .” American depositary receipts are used to transfer the securities. Abbr. ADS. Cf. AMERICAN DEPOSITARY RECEIPT.
..Black's Law 9th
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