Also called American depositary receipt

ADR

A receipt representing shares of a foreign company, traded in dollars on a US exchange. You own the economics without holding the foreign shares.

Updated 2026-09-05

An American depositary receipt is a certificate issued by a US bank representing shares of a foreign company held on deposit abroad. It trades in dollars on a US exchange and pays dividends in dollars.

It gives you the economics of the foreign company without a foreign brokerage account. What it does not remove is currency risk: the underlying shares are still priced in their home currency, so the ADR moves with both the company and the exchange rate.

Angie handles the accounting side of this explicitly. A company reporting in one currency and listing in another has every statement figure converted before valuation, and the rate used is disclosed on the row.

See also

  • Stock — A unit of ownership in a company. It carries a vote, a claim on whatever is left after everyone else is paid, and no promise of anything.
  • Currency risk — The risk that exchange rates move against you on a foreign holding. A foreign stock can rise in its own currency and still lose you money.

← See this one in the deck

Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.

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