American Depositary Receipts (ADRs)

Certificates traded in United States markets which represent an interest in shares of a foreign company. ADRs were created to make it possible for foreign issuers to meet United States security registration requirements and to facilitate dividend collection by dollar-based investors. Some ADRs sold in the United States under Section 144a exemptions are not readily resellable to all U.S. investors; but most ADRs are nearly as freely traded in the United States as a domestic issue. See also Depositary Receipt, Global Depositary Receipts (GDRs).

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