An American Depository Receipt (ADR) is a stock which trades in the United States (US) but represents a specified number of shares in a non-US corporation (like Infosys, etc). ADRs are bought and sold on American stock markets[pic]

just like regular stocks, and are issued/sponsored in the U.S. by a DEPOSITARY bank[pic]

- The first ADR was introduced by JPMorgan in 1927, for the British retailer Selfridges&Co

- ADRs were introduced because of the difficulty in buying shares from other non-US countries which trade at different prices and currency values.

- U.S. banks simply purchase a large lot of shares from a foreign company, bundle the shares into groups and reissue them on either the NYSE, AMEX, or Nasdaq.

- The depository bank sets the ratio of U.S. ADRs per home country share. This ratio can be anything less than or greater than 1. For example, a ratio of 4:1 means that 1 each ADR share represents 4 shares in the foreign company.


is to save individual investors money by reducing administration costs and avoiding duty on each transaction.

For individuals, ADRs are an excellent way to buy shares in a non-US company and capitalize on growth potential outside North America. ADRs offer a good opportunity for capital appreciation as well as income[pic]

if the company pays dividends.


• Unsponsored Shares

• Sponsored Shares




Global Depository Receipt (GDR) - certificate issued by international bank, which can be subject of worldwide circulation on capital markets.

-GDR's are emitted by banks, which purchase shares of foreign companies and deposit it on the accounts.GDRs represent ownership of an underlying number of shares.

- Global Depository Receipts facilitate trade of shares, and are commonly used to invest in companies from developing or emerging markets....

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