ADR
ADRs (American Depositary Receipts) allow US investors to get exposure to shares in foreign companies without the hassle of owning shares denominated in a foreign currency...
ADRs (American Depositary Receipts) allow US investors to get exposure to shares in foreign companies without the hassle of owning shares denominated in a foreign currency.
They are created when a depository bank, such as JP Morgan, buys foreign shares and then issues separate dollar-denominated ADRs to US investors. These can be subsequently traded in the US market just like the shares themselves.
The attraction of ADRs is that holding them confers all the usual benefits of share ownership such as dividends and voting rights, but without the need to deal directly on overseas markets or in foreign currencies.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Top 10 most affordable places for first time buyers
Looking to get onto the property ladder? We reveal the top 10 most affordable places in the UK to buy a house
By Oojal Dhanjal Published
-
Whatsapp scams - how to protect yourself
WhatsApp scams are on the rise and victims could lose thousands to fraud. We look at the most common scams and how to protect yourself
By Vaishali Varu Published