ADR Full Form

ADR is the term used in the context of stock markets, full form of ADR is American Depository Receipt. It refers to the receipts which are issued by the bank which is located in America to the people who are interested in buying shares of the company which is not located in USA. These receipts are issued in lieu of stocks deposited by the company desirous of getting ADRs and they are equivalent to the stocks and therefore they are entitled for dividends in the same way as domestic shareholders of the company.

These receipts track the price of the shares in its domestic markets and therefore it is equivalent to stocks and hence any investor who is living in USA and he or she is interested in buying the shares of a non US company can go for this option. For example suppose an investor in USA like the Indian company Infosys and thinks that in future its share price will increase but since he or she does not want to take currency risk than he or she will buy the ADR of Infosys rather than directly investing in stocks of the company.

0 comments… add one

Leave a Comment

Related pages

unqualified audit opiniondefinition of capital reservedifference between joint venture and partnershipintraday traderadvantages of the payback methoddefine floating exchange ratecrossed chequefeatures of marginal costingadvantages and disadvantages of privatizationdisadvantage of barteringaccounting entries for purchasespenetration and skimming pricingadvantages of merger and acquisitiondefinition consigneedisadvantages of break even analysisdefinition of bill discountingwhat is bartering systemmonopolistic marketsfloating exchange ratesauthocratic leadershipnse pre marketdiversifiable risksmonopolistic competition advantages and disadvantagespre open nsesystematic unsystematic riskdisadvantages of barterpayback financecarriage inwards and outwardsentry for unearned revenuemerits of mixed economypositives of urbanisationcapital budgeting advantages and disadvantagesexamples of overheadsfactors that affect elasticity of demandvertical analysis in accountinghorizontal communication flowwhat is the difference between job costing and process costingcrossing chequesdisadvantages of activity based budgetingdisadvantages of horizontal analysisproblems of barter systemhorizontal integration benefitshypothecationfdi and fiihedgers in derivative marketmeaning of debentures in hindifeatures of autocratic leadership stylewhat is free market economy advantages and disadvantagestraditional economy country examplesdifference between socialist and capitalistconglomerate integrationautocratic leadershipa horizontal mergerindirect quote exchange rateindirect expenses definition accountingdrawer drawee payeedebenture financedistinguish between systematic and unsystematic riskcost push inflation examplesissued vs outstanding sharescross cheque definitiondemand loanshorizontal analysis balance sheetadvantages and disadvantages of joint venturedeferred revenue expenditure accounting treatmentwhat are some examples of command economyswot analysis disadvantagesadvantages and disadvantages of rural and urban lifecapital receipts examplesadvantages of urbanisationmeaning of unsystematicsubstitutes goods examplesdefine dupont analysisdisadvantages of marginal costingexamples of traditional economy countries