Investor Glossary-depositary receiptInvestor Glossary-depositary receiptInvestor Glossary-depositary receiptInvestor Glossary-depositary receiptInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Depositary Receipt

The HTML to link to this page
 

Depositary Receipt (DR) was created in 1927 to aid US investor who wished to invest in non-US corporations. A depositary receipt is a negotiable certificate of ownership of shares in a foreign company traded in USA through a US depository bank. Each depositary receipt represents a specific multiple or fraction of the underlying shares in the custody of the US bank's foreign branch or its correspondent. The depositary receipt is publicly traded in either the over-the-counter market (Level-One Depositary Receipt) or on a national stock exchange (American Depositary Receipt). A depositary receipt can also be privately placed to Qualified Institutional Buyers (Rule 144A ADR). A US holder of the depositary receipt gets all benefits of foreign diversification and earns dividends in US dollars without incurring foreign custodial charges. Also public trading of a depositary receipt is subject to trading, settlement, and reporting rules like any other US security. The underlying stocks in a depositary receipt are subject to foreign tax withholding in their country of origin.



Rate this depositary receipt definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, Key Rate Duration, implied volatility, 144a, required rate of return, class C shares, open position, Zero Cost Collar, ex-dividend date, retained earnings, LIBOR, stock split, EBITDA, ex-dividend, limit order, balance sheet, FTSE, deferred tax, liquidity ratio, 1031 exchange, per diem, deferred revenue, reverse mortgage, cancelled check, stock market close, margin rate, current ratio, diluted share, dividends payable, real GDP, in escrow, risk management, APR, irrevocable trust, command economy, quality assurance, wholly-owned subsidiary, 1035 exchange, option premium, VIX, covered put, labor relations, average price per share, inflation, phantom income, minority interest, 401a, debt service coverage, annual return


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use