On the Money: American depository receipts
American Depository Receipts, or ADRs, allow investors to directly purchase foreign equities listed on U.S. stock exchanges.
If you’d like to learn about ADRs and adding foreign stocks to your investment portfolios, a good spot to start would be on the World Wide Web.
Here are a few places worth a look:
¢ The Bank of New York
www.adrbny.com/dr-edu-landing.jsp
Has information about ADR basics as well as statistics and performance data.
¢ The Investment FAQ
invest-faq.com/articles/ stock-adrs.html
Explains the ins and outs of ADRs, and how they work.
¢ Investopedia
www.investopedia.com/ university/adr/
Provides ADR basics and risks.
¢ U.S. Securities and Exchange Commission
www.sec.gov/investor/pubs/ininvest.htm
Offers an online brochure discussing international investing, including ADRs.