An ADR is a negotiable certificate issued by a U.S.bank in the United States to represent the underlying shares of a foreign corporation's stock held at a custodian bank in the foreign country.

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This statement accurately describes what an American Depositary Receipt (ADR) is. ADRs enable U.S. investors to invest in foreign companies without having to directly purchase foreign shares and deal with the associated costs and complexities. Instead, they can purchase ADRs, which are traded on U.S. exchanges and represent a certain number of shares of the foreign company's stock held by the custodian bank in the foreign country.

An ADR Is a Negotiable Certificate Issued by a U