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What are the benefits of ADRs to U.S. investors?

April 26, 2017ADRs Benefits investors

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What are the benefits of ADRs to U.S. investors?

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U.S. investors generally prefer to purchase ADRs rather than ordinary shares in the issuers home market because ADRs trade, clear and settle according to U.S. market conventions. One of ADRs main advantages is the facilitation of diversification into foreign securities. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information. ADR holders also appreciate dollar dividend payments and receiving corporate action notifications.