Are ADRs riskier than normal stock shares?
Not at all. ADRs were created to give U.S. investors a means of investing in international companies without those companies having to issue a full public offering on U.S. markets. Basically, they’re a means of reducing the red tape. And since ADRs are issued by U.S. banks, they’re just as safe as buying ordinary shares on the stock market. However, it’s always best to purchase companies that are based in countries that follow international accounting standards. The top eight are: Australia, Canada, France, Germany, Japan, the U.S., and the U.K. Outside of these, Bahrain, Singapore and Hong Kong follow International Accounting Standards closely.
