ADR stands for American Depository Receipt, which is a certificate that lets investors invest in a foreign company on U.S. stock markets.
ADRs are sponsored by banks and brokerage firms in the U.S.
An ADR may represent one or more shares of the foreign stock. But if the stock is expensive, it may represent a fraction of a share. That way, the ADR will start trading at a moderate price, or be in range of similar stocks on the exchange where it trades. The price usually stays close to the price of the foreign stock in its home market.
ADRs make it practical for increasingly global-minded investors to invest in foreign companies, despite language barriers, shifting foreign exchange rates and the difficulty of trading on a foreign stock market.
Foreign firms benefit from ADRs by letting companies offer dollar-denominated shares and raise capital in the U.S. Issuing ADRs also raises a non-U.S. firm’s liquidity and visibility in the United States and around the world.
Depositary banks that issue ADRs sometimes charge fees for their services, and deduct these fees from the dividends and other distributions on the ADRs. The depositary bank also incurs expenses for services such as converting foreign currency into U.S. dollars, and passes these costs on to ADR holders.
We believe most investors could benefit from holding some foreign investments in their portfolios for added diversification—and that ADRs are a good way to do it.
At TSI Network, we recommend using our three-part Successful Investor philosophy:
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These two global leaders now plan to shrink their operations. That’s good news for investors, as stock markets tend to prefer—and reward—companies with easy-to-understand businesses rather than those with complex conglomerate structures. Even so, we prefer Unilever over Sony for your new buying.
UNILEVER PLC (ADR)… Read More
For Canadian investors seeking global exposure in 2024, ADRs and international ETFs may be a safer option than picking individual overseas stocks
We believe most investors could benefit from holding some foreign and international investments in their portfolios for added diversification. And growing markets like India… Read More
ABB LTD. ADRs $48 is a buy. This Swiss-based company (Over-the-counter Pink Sheets symbol ABBNY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs o/s: 1.8 billion; Market cap: $86.4 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.abb.com) is a leading maker of electrical transformers,… Read More
Governments in the U.S. and other countries are now mandating that automakers phase out production of gasoline-powered cars and trucks and shift to electric-powered vehicles (EVs). However, consumer demand for EVs remains weak due to their higher costs and concerns over their range of use… Read More
PHILIPS ELECTRONICS N.V. ADRs $20 is a hold. The company (New York symbol PHG; Conservative Growth Portfolio, Manufacturing sector; ADRs outstanding: 906.4 million; Market cap: $18.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.2%; TSINetwork Rating: Average; www.philips.com) has stopped selling its sleep apnea and ventilator… Read More
DIAGEO PLC ADR $151 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 562.5 million; Market cap: $84.9 billion; Price-to-sales ratio: 3.6; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages.
In… Read More
What are ADRs and what are the fees investors pay
Recently one of our Inner Circle members asked, “You mentioned recently that TSI recommends a handful of ADRs (American Depositary Receipts) providing exposure to European and Japanese stocks. One question: What are the ADR fees charged… Read More
Commodity prices have weakened in the past few months, partly due to China’s slower-than-expected post-pandemic recovery. Even so, we still like the long-term prospects of these two leading resources stocks.
BHP GROUP LTD. (ADR) $62 is a buy. This company (New York symbol BHP; Conservative Growth Portfolio, Resources… Read More
J.P. MORGAN CHASE & CO., $170.31, New York symbol JPM, is a buy.
Morgan is the largest banking firm in the U.S., with total assets of $3.89 trillion as of December 31, 2023.
In May 2023, the bank acquired most of the assets and deposits of failed California-based… Read More
A: An American Depositary Receipt, or ADR, is a proxy for a foreign stock that trades in the U.S. and represents a specified number of shares in the foreign corporation. ADRs are bought and sold on U.S. stock markets, just like regular stocks, and are… Read More
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What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
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How can you ask questions about our Privacy Policy and access your personal information?
The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.
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Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
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