# American Depositary Receipt (ADR)

*Markets & Instruments — Finicade finance glossary*

An ADR is a US-listed certificate representing shares of a foreign company, letting Americans buy overseas equities in dollars through an ordinary broker.

An ADR is a US-listed certificate representing shares of a foreign company held by a depositary bank, letting Americans buy overseas equities in dollars through an ordinary broker. The underlying exposure is still foreign, so currency moves hit your return directly. Watch two frictions: depositary fees skimmed from dividends, and foreign withholding tax, which can often be partly reclaimed but rarely is.

**Also known as:** ADR, depositary receipt, GDR

**Related terms:** [Stock Exchange](https://finicade.com/glossary/stock-exchange), [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Emerging Markets](https://finicade.com/glossary/emerging-markets), [Custodian](https://finicade.com/glossary/custodian), [Dividend Withholding Tax](https://finicade.com/glossary/dividend-withholding-tax)

Source: https://finicade.com/glossary/american-depositary-receipt