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| Definitions by InvestorWords.com |
| What is...? |
| American Depositary Receipt (ADR) A negotiable certificate held in a U.S. bank representing a specific number of shares of a foreign stock traded on a U.S. stock exchange. ADRs make it easier for Americans to invest in foreign companies, due to the widespread availability of dollar-denominated price information, lower transaction costs, and timely dividend distributions. see also Global Depositary Receipt, receipt. |
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