Age-Old Fact! First ADR was created by JP Morgan in 1927
American Depository Receipt (ADR) is a security or share of a foreign company that is not directly traded on US Exchanges. The authority of issuing ADRs are with the US Bank.
A single ADR may represent one share or fraction of a share of the foreign company. The value of ADR depends on the foreign exchange rate and the company.
ADR are the one of the most convenient ways by which investors can buy the stocks of the companies based outside of the USA. ADR works as an important investment option for the foreign companies who do not want to directly involve themselves into complexities of USA stock exchange. Reduced administration and duty cost are some important benefits of ADR. By positively mobilizing global financial system on their behalf with ADR, Orient Finance helps its clients to make best of its financial and investment decisions.
JPMorgan Chase, Deutsche Bank, Citigroup, The Bank of New York are a few banks which create and issue ADRs.
Some of the ADR’s are as Teva Pharmaceutical ADR, Siemens AG ADR, Novartis AG ADR, Diageo Plc ADR