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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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