An American Depositary Receipt (ADR) is a financial instrument that allows US investors to hold shares in a foreign company, which are held by a US-based financial institution. ADRs represent ownership in the foreign company, and their value fluctuates based on the performance of the underlying foreign stock. ADRs are issued by banks and brokerage firms, which buy foreign shares and hold them in custody. They then issue ADRs against those shares, allowing US investors to trade them on US stock exchanges. ADRs make it easier for US investors to invest in foreign companies, as they can do so in their own currency and through their domestic brokerage accounts.

An American Depositary Receipt (ADR) is a financial instrument that allows U.S. investors to invest in foreign companies without dealing directly in international markets. ADRs represent shares of a non-U.S. company and are issued by U.S. banks. These receipts trade on American stock exchanges, such as the NYSE or NASDAQ, or over-the-counter, just like domestic stocks.

Each ADR may represent one or multiple shares of the foreign company or even a fraction of a share. They are denominated in U.S. dollars, with dividends also paid in dollars, simplifying transactions for American investors. ADRs provide exposure to global markets while offering the convenience and regulatory oversight of trading within the U.S. financial system. They are popular for diversifying portfolios.