An American depositary receipt (ADR) is essentially a certificate that represents one or more shares of stock in a foreign company that typically trades on an exchange in a different country.

Disadvantages of American depositary receipts. What Is an American Depositary Receipt (ADR)? ADRs are certificates issued by U.S. banks or brokers that represent shares in a foreign company.

An American Depositary Receipt (ADR) is a certificate issued by a U.S. bank, representing shares of a foreign company. ADRs enable U.S. investors to purchase shares in foreign companies as if they ...