Glossary
ADR: meaning, example and why it matters
American depositary receipt: a certificate traded in the US that represents shares of a foreign company, letting US investors hold it without buying on the home exchange.
Worked example
If one ADR represents 2 ordinary shares and each share is $12, the ADR trades near $24 plus or minus the exchange-rate and market differences.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
ADRs let US investors hold a foreign company without buying on its home exchange, and they are priced in dollars.
Related terms
Frequently asked questions
Is an ADR the same as the company's shares?
It represents them. The ADR's price follows the shares but can differ because of the exchange rate and trading hours.
Is this page investment advice?
No. ADR is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.