Business Glossary

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.

negotiable bank-issued certificate representing ownership of stock securities by an investor outside the country of origin. An international depositary receipt, or IDR, is the non-U.S. equivalent of an American Depositary Receipt. These instruments have been used since the 1970s to facilitate international trading in securities. The securities backing the receipt remain in the custody of the issuing bank or a correspondent.

written evidence given to a policyowner by an insurance company or insurance agency that it has received a premium.