Definition, Structure, Examples, How to Invest

  • A US Depository Receipt is issued by a bank and represents shares in a foreign company.
  • US investors use ADRs to invest in foreign companies, bypassing the complexities of the foreign market.
  • There are more than 2,000 ADRs representing companies located in more than 70 countries.
  • Read more Personal Finance Insider stories.

Let’s say you heard that Adidas is creating a network for 50,000 college athletes to be paid sponsors of its brand and want to buy shares of the company because of the potential it generates for profit. Then you discover that Adidas shares are traded in Frankfurt and you are in the US.

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