Lets know about ADR Full Form and with this we will tell you what is ADR and what is the difference between ADR and GDR and many other important information related to it, Is. All of you often hear about ADR in news or TV etc. But many people do not have information related to what is ADR and or what is ADR Full Form, so this article has been written so that we can tell you about ADR, Can tell full details.

ADR Full Form

Before telling about what is the difference between ADR and GDR or what is ADR, we are telling you about its full name.

ADR Full Form – American Depository Receipt

You can say ADR as American Depository Receipt and it is a type of negotiable certificate which is issued by US Bank.

What is ADR ?

As we told you this is a negotiable certificate and it is issued by the US Bank and through it represents the US $ representing securities of foreign companies trading in the US stock market with the underlying shares held by them. It also has the power to make a claim against the numbers of US investors through ADRs that can also be invested in non-US companies and in such situations dividends are paid to ADR holders in US dollars.

Depository receipt is also known by different names in some circumstances, such as if the securities of an Indian company are listed in the stock market of America, then it will be called American Depository Receipt, while it is also called this securities in any country other than America. If it is bought or sold, it will be called Global Depository Receipt.

American Depository Receipt?

We are telling you some important information about ADR with examples so that you can get information about ADR, what is it.

1. This is a negotiable certificate issued by the US US Bank.
2. It is the security available in the US stock exchange so that any US citizen or investor can buy the securities of any Indian company through the US stock exchange without coming into Indian stock.
3. If any company in India wants to be listed on the American Stock Exchange, then it is mandatory for it to issue ADR to it.
4. This is a great way for an Indian company to raise capital in the American stock market.
5. For example, suppose an American investor wants to buy shares of HDFC Bank of India, then he does not need to come to India to invest in the stock because he can invest in it through ADR from America itself.

This is how ADR works and it helps the company a lot in raising capital, along with it it is easy for investors from other countries to buy shares of a company of another country, due to which ADR has a lot of importance in today’s time, Are being given.

Conclusion

We have tried to give you detailed information about what is ADR Full Form and what is ADR and how ADR works, we hope you will find the information given about ADR useful if you If you like the information, then definitely share it with your friends through social media and if you want to ask any kind of question related to it, then you can also tell us through comment.

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