What Are American Depository Receipts?
American Depository Receipts are a convenient way for U.S. citizens to buy stock in foreign corporations. ADRs can be bought and sold on the New York Stock Exchange and other exchanges just as stock of a U.S.-based company.
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A way to Participate in Worldwide Economic Growth
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Much of the world's fastest economic growth is taking place overseas, in countries like Russia, China and Korea. ADRs are a way you can get a piece of the action.
What is an ADR?
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An ADR is a security that trades on U.S. markets and represents a specific number of shares in a foreign company. The ADR sells at the same price as those number of shares sell on their foreign markets, converted to U.S. dollars.
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Where are ADRs Listed?
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ADRs are listed in the stock market tables of most major newspapers and usually can be found on your stock broker's Web site.
How to buy ADRs
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You can buy ADRs like any other stock, through your stock broker and through discount brokers like Scottrade.
The Risk of ADRs
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ADRs have the same risk as any other stock, you can lose money. An ADR can go up or down in price because of economic conditions or because the company you invested in is failing.
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