In this video, you will learn everything you need to know about American depositary receipts. #americandepositaryreceipts #adr #wallstreetmojo #foreigncompany #stockmarket Chapters: 00:00 – Introduction 00:22 – What are American depositary receipts? 01:29 – Types of ADRs 02:21 – Advantages of ADRs 03:03 – Disadvantages of ADRs What are American depositary receipts? An American depositary receipt allows investors in the US to purchase shares of companies situated and listed on stock exchanges of other countries. J.P. Morgan was the first to create an ADR in 1927, in which they enabled Americans to invest in a British company, Selfridges. Currently, the US stock exchanges have thousands of ADRs traded representing various companies from various countries. (Explained in detail in the video) Types of ADRs Now that you’ve understood what an ADR is, you should know that there are mainly 2 types of ADRs, sponsored ADRs and unsponsored ADRs. In sponsored ADRs, the …
