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ADR (American Depositary Receipt)

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Description

A negotiable certificate issued by a U.S. bank representing shares in a foreign company, allowing U.S. investors to invest in non-U.S. companies.

American Depositary Receipts (ADRs) are financial instruments that allow U.S. investors to own shares in foreign companies, traded on U.S. stock exchanges. ADRs simplify the process of investing in international markets by eliminating the need for foreign currency transactions or navigating foreign stock markets directly, thus broadening investment opportunities while managing risks associated with international investing.

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