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What do the terms ADR and ADS mean?

Back to: DRP Fundamentals
American Depositary Receipt (ADR):
An ADR is a negotiable receipt or certificates issued by a U.S. Depositary Bank. It represents shares of stock in a foreign corporation. The shares are held by the bank. This is a popular form of owning shares of foreign companies. ADRs are subject to the securities laws of the United States and the rules of the member exchanges. And they may offer a DRP Plan.

American Depositary Shares (ADS):
Similar form of certification. Same concept.

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