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American depositary receipt

A security issued by a US bank against the shares of a foreign company and traded on the American market.

How to read the number

It lets an investor buy a foreign business in dollars under local settlement rules: the dividend rights are the same, but they arrive through an intermediary.

When the metric lies

The depositary charges its own fee and withholds tax at source; if settlement is suspended the receipt detaches from the underlying share and starts pricing on its own.

Also known as: adr

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