The stocks of most foreign companies that trade in the U.S. markets are traded as American Depositary Receipts (ADRs). U.S. depositary banks issue these stocks. Each ADR represents one or more shares of foreign stock or a fraction of a share. If you own an ADR, you have the right to obtain the foreign stock it represents, but U.S. investors usually find it more convenient to own the ADR. The price of an ADR corresponds to the price of the foreign stock in its home market, adjusted to the ratio of the ADRs to foreign company shares.
Trick or Treat? Don’t Get Tricked When It Comes To Investing For Your Future
Instead, treat yourself to some tips that can help you avoid fraud and make better informed investment decisions.
New Resources for Older Investors
Never stop learning when it comes to investing for your future and protecting your hard-earned money. Check out our new content and videos today!
Investor Resilience, Crypto Assets, and Sustainable Finance
Learn about the three themes of World Investor Week 2023 in our joint Investor Bulletin.