ADR Full Form
ADR full form is
American Depositary Receipt.
ADR Meaning:
ADR started in the year 1927.
It is a certificate issued by a US bank.
It is represents shares in foreign stocks.
It will trade on stock on American stock exchanges.
American Depositary Receipts and its dividends are priced in US dollars.
It is represents an easy and liquid way for US investors to own foreign stocks.
ADR is negotiable document.
ADR Details
The ADRs are used in USD and have the underlying security of a US institution based overseas. ADR holders never need to concern themselves with exchanging the foreign currency within the forex markets, or about the exchange rates themselves since this may be taken care off by the US Repository Financial Institutions.
The stocks are first purchased by the bank, then held as shares in their inventory. Once the ADR is issued, the bank will then show the list on the ny stock market , or the AMEX. this will then be purchased by interested investors a bit like any regular stock, then be used for trading among other investors or banks for a profit.