| American depositary receipts (ADRs) are a convenient way for Americans to own shares in foreign companies. Rather than buying non-American shares direct, they buy ADRs. ADRs are receipts for the shares of a foreign company. The share certificates themselves are held by an American bank which issues the ADRs, then collects dividends and distributes them to ADR-holders after converting them into dollars. The holders of ADRs normally have all the rights of normal shareholders, including voting rights. The ADRs are tradable instruments in their own right. Although intended for American investors, ADRs can also be bought by non-Americans. In some cases it can be cheaper (in terms of costs) for someone in London to buy ADRs in a UK company than to buy the shares on the London markets.
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