American Depository Receipt.
American Depository Receipts (ADRs) are certificates that
represent shares of a foreign stock owned and issued by a
U.S. bank. The foreign shares are usually held in custody
overseas, but the certificates trade in the U.S.
ADR's (American Deposit Receipts)are bonds/certificates
issued by American companies & are traded in NYSE exhange
only.ADR's are complied of GAAP standards.Cost of issuing
ADR's can be around $20million to $40million.In other words
Indian shareissuing companies who wants its share to be
issued on NYSE list is ADR.
ADR means that - American Depoditory Receipts,
These are the Financial Instrument which can be issued by
any Non - American company to capture the money in US
market.These are traded in US Stock Market.
FOr example most of the Indian Companies are Issue GDR in
US market for mobilisation of funds for their financial
needs i,e,. INFOSYS,SATYAM,REDDYS etc...
American Depository Receipts:Depository Receipts issues by
the company in USA is known as the ADR.Such depository
receipts advosiry of the provision in USA like SEBI IN india
An American Depositary Receipt (or ADR) represents the
ownership in the shares of a foreign company trading on US
financial markets. The stock of many non-US companies
trades on US exchanges through the use of ADRs. ADRs enable
US investors to buy shares in foreign companies without
undertaking cross-border transactions. ADRs carry prices in
US dollars, pay dividends in US dollars, and can be traded
like the shares of US-based companies.
Contingent liabilities should be recorded in the accounts
when
A) It is probable that the future event will occur
B) The amount of the liability can be reasonably estimated
C) Both A&B
D) Either A or B
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