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Investment/Financial Term - AMERICAN DEPOSITORY RECEIPT (ADR)

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AMERICAN DEPOSITORY RECEIPT (ADR)


Foreign company equities traded on a U.S. exchange. The ADR is issued by a U.S. bank in place of the foreign company's shares, which are held in trust by the bank. ADRs facilitate the trading of foreign stocks in U.S. markets. ADRs have exposure to currency fluctuations.