ADRs are negotiable warehouse receipts for deposits in foreign banks that are denominated in a currency other than U.S. dollars.

Question

Quizplus · Accepted Answer

ADRs (American Depositary Receipts) represent shares in a foreign company that are held by a U.S. bank overseas, allowing those shares to be traded on U.S. stock exchanges. They are not warehouse receipts nor are they specifically related to deposits in foreign banks or denominated in a currency other than U.S. dollars.

ADRs Are Negotiable Warehouse Receipts for Deposits in Foreign Banks