What are American Depositary Receipts (ADR)?
These are shares of non-US companies traded in American stock exchanges in US dollars. ADRs work like any other share that we know of only that they are negotiable receipts held in a US bank representing a specific number of actual shares called ADS. For the American public ADRs simplify investing. So when Americans purchased Infosys stocks listed on Nasdaq, they could do so directly in dollars, without converting them from rupees. Such companies are required to produce financial results according to a standard accounting principle, thus, making their earnings more transparent. An American investor holding an ADR does not have voting rights in the company.
