Advisory Opinion

n. abbreviated as ADR, American Deposit Receipt is issued by U.S. depositary banks and represents one or more shares of a foreign stock or a fraction of a share. Trading is done in terms of ADR, for the sake of convenience, instead of trading of actual foreign shares The price of an ADR is often close to the price of the foreign stock in its home market, adjusted for the ratio of ADRs to foreign company shares. Individual shares of a foreign corporation represented by an ADR are called American Depositary Shares (ADS).

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