- American depositary receipt (ADR)Trust receipts equal to a specific number of shares of corporate stock issued in a foreign country. ADRs are sold and traded in the United States. American Banker Glossary————————See American Depositary Receipt Euroclear Clearing and Settlement glossary————American Depositary Receipt (ADR)A receipt or certificate issued by a US bank that represents a specific number of shares of foreign-based corporations held by a US banking institution in the country of origin on behalf of an investor in the US. Exchange Handbook Glossary————American Depositary Receipts ( ADRs)ADRs are a convenient way for domestic investors to own shares in foreign companies. Denominated in US dollars, ADRs allow American investors to invest in a foreign company. However, ADRs are also traded in London. London Stock Exchange Glossary
* * *ADR ADR noun1. [countable] FINANCE American Depositary Receipt; a type of investment that allows investors in the US to trade indirectly in the shares of non-US companies:
• ADRs provide the opportunity to buy into Asian companies without incurring currency risks.— compare EDR2. [uncountable] LAW alternative dispute resolution; methods of settling legal disagreements without using an ordinary court:
• It resolves its product liability cases through a company that provides ADR services.
* * *American Depositary Receipt.The form in which shares of foreign companies are usually traded on US stock markets. An ADR is issued by a US bank and represents a bundle of shares of a foreign corporation held in custody overseas. Trading in ADRs rather than the underlying shares reduces administration and trading costs, both for companies and for investors.
* * *ADR UK US noun► [C] FINANCE, STOCK MARKET ABBREVIATION for American Depositary Receipt: a document used in US financial markets for buying shares in foreign companies. ADRs have prices in US dollars, pay dividends in US dollars, and are bought and sold in the same way as shares in US companies: »
The ADR program will broaden the existing market for the firm's stock, which in turn could drive up the price.► [U] US MANAGEMENT, HR ABBREVIATION for alternative dispute resolution: a set of actions that are used by organizations to try to solve disagreements without using a court of law, for example arbitration and conciliation: »
In-house ADR programs can help employers avoid unnecessary lawsuits.
Financial and business terms. 2012.