Mention one common characteristics of public depositary and American depositary receipts
answer me fast
Answers
Hey mate,
An American depositary receipt (ADR, and sometimes spelled depository) is a negotiable security that represents securities of a company that trades in the U.S. financial markets.[1]
Shares of many non-U.S. companies trade on U.S. stock exchanges through ADRs, which are denominated and pay dividends in U.S. dollars and may be traded like regular shares of stock.[2] ADRs are also traded during U.S. trading hours, through U.S. broker-dealers. ADRs simplify investing in foreign securities by having the depositary bank "manage all custody, currency and local taxes issues".[3]
The first ADR was introduced by J.P. Morgan in 1927 for the British retailer Selfridges on the New York Curb Exchange, the American Stock Exchange's precursor.[4]
They are the U.S. equivalent of a global depository receipt (GDR). Securities of a foreign company that are represented by an ADR are called American depositary shares (ADSs).