Watercooler: ADRs offer slice of global economy
American Depository Receipts, or ADRs, allow investors to purchase foreign equities listed on U.S. stock exchanges. Typically issued by a U.S. bank, an investor receives a negotiable certificate representing a specified number of shares.
If you'd like to learn about ADRs, a good place to start is the World Wide Web.
Here are a few sites worth a visit:
The Bank of New York • Learn about ADR basics and check out statistics and performance data, at http://www.adrbnymellon.com/drÂ_edu_landing.jsp
The Investment FAQ • Explains the ins and outs of ADRs, and how they work, at http://www.invest-faq.com/articles/stock-adrs.html
Investopedia • Provides ADR basics and risks, at http://www.investopedia.com/university/adr
JPMorgan • Features ADR reference material and guide, and search of ADR companies under "DR Search" in top navigation, at http://www.adr.com/Education/AboutDRs
U.S. Securities and Exchange Commission • Online brochure discusses international investing, with a section devoted to ADRs, at http://www.sec.gov/investor/pubs/ininvest.htm