ADR (American Depository Receipts)

The American Depositary Receipt is used in the United States to deal in shares of foreign corporations. Through the course of listing certain securities on US stock exchanges, the American depositary bank acquires assets in foreign corporations. Since 1927, the scheme has been used. Receipts (ADRs) come in US dollars. Similarly, they are traded openly in Europe. ADRs are a tool for capital raising in the US and foreign markets. They can have specific names that suit a given market’s requirements.