Understanding American Depositary Receipts and How They Work

By Leanna Kelly You love the prospects of an overseas company and want to invest in them. The problem? That company isn’t listed on any of the U.S. stock exchanges. How can you put your investment dollars behind a company listed on a foreign exchange, without access to it directly? The answer is through American depositary receipts (ADRs).
ADRs represent a transparent, safe way for investors to interact with global companies that may not want or be able to list on U.S. exchanges. They’re a great opportunity for these companies to access U.S. capital markets, and for U.S. investors to broaden their scope …read more

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