American Depository Receipt (ADR)
(Facilitates foreign share trading in the US markets.)
ADR - American Depository Receipt is a security issued by a US bank in place of foreign shares that are held in trust by that bank.
ADR's represent ownership in a foreign company.
This is how you can trade stocks of some foreign companies.
The shares of stock are purchased and put in a trust account at a foreign branch of a US bank.
The bank then issues (or receives) deposit receipts (ADR's) to the US investor.
