Introduction To American Depository Receipts ADRs
american depository receipts are one of the most convenient and popular ways for investors to buy stocks of companies based outside the u.s. adrs exist because many foreign companies don't wont to bother with the expense and hassle of directory listing their shares on u.s. stock exchanges. here is how adrs work. a broker will buy the shares of foreign companies trading on their home exchanges and deliver those to a custodian bank. then the broker has another bank called a depository bank issue shares called receipts on the basis of those shares held by the custodian bank. those receipts can then trade on the u.s. exchange or over the counter just like any other share or stock. the prices are quoted in u.s. dollars, dividends are paid in u.s. dollars and the buying, selling and settlement process is the same as with shares that are directly listed on the u.s. exchanges. there are several types of adrs such as unsponsored adrs which have no involvement or support from the foreign company itself. because the company is not supporting this issue, it may not release english versions of financial information or news releases and unsponsored adrs are often not liquid. by contrast, an overseas company can choose to actively support an adr program and use it to access the u.s. capital markets. level one adrs trade over the counter. this does not require for sec registration. no one does require the company to report results according to u.s. accounting guidelines. level two and level three adrs can be listed on u.s. exchanges, but the companies must register with the sec, report results and compliance with u.s. accounting laws and offer regular reports. all of this makes it easier for americans to invest in foreign companies.
- american depository receipt・・・米国預託証券→https://ja.wikipedia.org/wiki/%E7%B1%B3%E5%9B%BD%E9%A0%90%E8%A8%97%E8%A8%BC%E5%88%B8
- over the counter・・・店頭で