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.

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.

MoneyWeek magazine

Latest issue:

Magazine cover
What a farce!

John Stepek on surviving the Greek fallout

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

From ADRs to Z scores – all the terms you wish you understood, but were too embarrassed to ask about.

Gervais Williams: if you want real dividend growth, buy small-cap stocks

Merryn Somerset Webb interviews small-cap stock expert Gervais Williams about how penny shares outperform blue chips 'again and again'.


Which investment platform is the right one for you?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from, with varying fees and charges. Find out which is best for you.


1 July 1972: Britain's first Gay Pride march is held 


On this day in 1972, the Gay Liberation Front organised Britain's first Gay Pride march from Trafalgar Square to Hyde Park.


Anatomy of a Grexit: how Greece would go about leaving the euro

Jonathan Loynes and Jennifer McKeown, economists at Capital Economics, look at the key issues and challenges of a Grexit, how it might be best managed, and set out a timetable for change.