Answer Posted / khayamuddin
1) A negotiable certificate issued by a U.S. bank
representing a specified number of shares (or one share)
in a foreign stock that is traded on a U.S. exchange. ADRs
are denominated in U.S. dollars, with the underlying
security held by a U.S. financial institution overseas.
ADRs help to reduce administration and duty costs that
would otherwise be levied on each transaction
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