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What does ADR mean in stocks?

moomoo Courses ·  Feb 18, 2021 19:55  · Exclusive

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In this article, we will introduce how ADRs work.

American Depositary Receipt (ADR) is a kind of negotiable security circulating in the United States securities market.

ADRs offer U.S. investors a way to purchase stock in overseas companies that would not be available otherwise. 

ADR holders do not have to transact the trade in the foreign currency or worry about exchanging currency on the foreign exchange market. These securities are priced and traded in dollars and cleared through U.S. settlement systems.

We take Chinese ADRs for example. Shares for Chinese technology firms such as $TENCENT HLD ADR(TCEHY.US)$ and $Alibaba Group Holding Ltd(BABA.US)$ are famous ADRs we can trade in the U.S. market with dollars.

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Source: moomoo

By Eric

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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