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American Depositary Receipts (ADRs): Definition, Types, Example

By Kristi WaterworthUpdated May 26, 2025 at 2:07 PM | Fact-checked by Frank Bass

Key Points

  • ADRs allow U.S. investors to trade foreign stocks via domestic exchanges.
  • There are two main types of ADRs: sponsored and non-sponsored.
  • Benefits of ADRs include easier trading, but risks include potential fees and program termination.

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