I have read that legendary investor Warren Buffett has just bought some Nestle ADRs to add to his portfolio. What are ADRs?
American Depositary Receipts (ADRs) were initially created in order for US investors to be able to trade in foreign shares, such as in the UK, without the need to be concerned with foreign exchange risk (they are priced in dollars), the higher commissions usually associated with international trading, collection of dividends or charges for custody. ADRs are therefore widely traded on US exchanges for those investors wishing to diversify their portfolio geographically. Indeed, the concept proved so popular as to lead to the creation of GDRs Global Depositary Receipts, which are based on the same principle. In this way, for example, a UK investor could trade more easily in a security in a country where, perhaps, either access to the local market is restricted or where market liquidity is limited. My wife and I have a number of shares in a nominee portfolio in joint names. If we sell shares, is any capital gain split equally, i.e. both claim maximum allowance, or can we only claim one amo
Related Questions
- Should the small dollar investor attempt to follow, or just ignore, portfolio diversification and dollar cost averaging strategies?
- I have read that legendary investor Warren Buffett has just bought some Nestle ADRs to add to his portfolio. What are ADRs?
- How does First Asia Investor determine when to add or remove holdings from a particular portfolio?
