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Answer Posted / shilpa
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.
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