ADR (American Depository Receipts)

American Depository Receipts are used for trading securities of foreign firms within the USA and have been used since 1927. Just like the securities of US companies, ADRs are denominated in US dollars. In this way they are also freely traded in Europe. ADRs may be listed on stock exchanges and are an instrument to attract capital on the American and international markets. ADRs can have different names according to the requirements of a particular market.