Definition 1.
American depositary receipts, or ADRs, represent shares of foreign companies traded in US dollars on US exchanges. For all intents and purposes, they are just like shares; you buy and sell through a broker, pay a commission, etc. Technically, though, ADRs are tradable receipts for actual shares on deposit at a bank. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.
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