American Depository Receipt
Thread Rating:
  • 1 Vote(s) - 1 Average
  • 1
  • 2
  • 3
  • 4
  • 5
computer science crazy
Super Moderator
******

Posts: 3,048
Joined: Dec 2008
#1
23-09-2008, 02:19 AM


Overview
Introduced to the financial markets in 1927, an American Depository Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage.

Primarily the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them on either the NYSE, AMEX, or Nasdaq.

The depository bank sets the ratio of U.S. ADRs per home country share. This ratio can be anything less than or greater than 1. The reason they do this is because they wish to price the ADR high enough as to show substantial value, yet low enough, so that the individual investors can purchase these shares.

Most investors try to avoid investing in penny stocks, and many would shy away from a company trading for 50 Russian Roubles per share, which equates to $1.50 US per share. As a result, the majority of ADRs range between $10 and $100 per share. If, in the home country, the shares were worth considerably less, then each ADR would represent several real shares.
Use Search at http://topicideas.net/search.php wisely To Get Information About Project Topic and Seminar ideas with report/source code along pdf and ppt presenaion
Reply

Important Note..!

If you are not satisfied with above reply ,..Please

ASK HERE

So that we will collect data for you and will made reply to the request....OR try below "QUICK REPLY" box to add a reply to this page

Quick Reply
Message
Type your reply to this message here.


Image Verification
Please enter the text contained within the image into the text box below it. This process is used to prevent automated spam bots.
Image Verification
(case insensitive)

Possibly Related Threads...
Thread Author Replies Views Last Post
  NISM-Series-VI: Depository Operations Certification Examination study tips 0 292 03-07-2013, 01:58 PM
Last Post: study tips
  American Depositary Receipts (ADRs) PPT study tips 0 243 21-06-2013, 04:55 PM
Last Post: study tips
  The Evolution of Employment Rights: The North American Context project girl 0 248 07-02-2013, 12:30 PM
Last Post: project girl
  NORTH AMERICAN FREE TRADE AGGREMENT NAFTA project girl 0 320 14-01-2013, 04:48 PM
Last Post: project girl
  North American Free Trade Agreement Report project girl 0 377 28-12-2012, 11:58 AM
Last Post: project girl
  American depositary receipt (ADR) seminar ideas 0 259 23-07-2012, 04:23 PM
Last Post: seminar ideas