receipt for the shares of a foreign-based corporation held in the vault of a U.S. bank and entitling the shareholder to all dividends and capital gains. Instead of buying shares of foreign-based companies in overseas markets, Americans can buy shares in the United States in the form of an ADR. ADRs are available for hundreds of stocks from numerous countries. Those, called Sponsored ADRs, which are issued in cooperation with the foreign company whose equity shares will underlie the related American Depositary Share (ADS) , are eligible for listing on a major U.S. exchange and afford the shareholder rights and benefits associated with direct ownership, such as voting rights, and the right to receive reports. Unsponsored ADRs, issued without the involvement of the underlying foreign company, may not have such rights attached and the shares generally trade over-the-counter.

receipt issued by U.S.banks to domestic buyers as a convenient substitute for direct ownership of stock in foreign companies. ADRs are traded on stock exchange and in over-the-counter medicine markets like stocks of domestic companies. Underlying shares are called American Depositary Shares.

negotiable certificate issued by a U.S. bank for shares of stock issued by a foreign corporation. The securities are held in a custodial account, either at the issuing bank or an agent. ADRs are registered with the Securities and Exchange Commission, and give the holder the same benefits of ownership as shareholders. Two types of American Depositary Receipts include sponsored ADRs, which are approved and promoted by the issuing corporation; and unsponsored ADRs, which are not backed by the issuer. ADRs are priced in dollars, and traded on stock exchanges and over-the-counter in the same fashion as U.S.-issued securities.