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...

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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.

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