ADR (American depositary receipt) is a negotiable instrument whose issuing authority is U.S bank. ADR represents shares that are traded on US exchange. The underlying security of ADR is held by U.S financial institution overseas. Reduced administration and duty cost are some important benefits of ADR
ADRs are an easy way for investors to buy stock in foreign companies. Foreign firms also derive advantages from ADRs. It makes it easier for them to attract capital from the investors, without the burden of listing themselves on the US stock exchanges. It also provides an access to foreign listed companies that usually wouldn’t opt for investment from overseas otherwise. There are two types of ADR- sponsored and unsponsored.
Orient offers through our principals, a worldwide access to our clients to over 2000 established companies from major countries listed in the U.S. This diversify the portfolio across the globe even though the focus is on the American market.