American Depositary Receipts (ADRs) are negotiable certificates that represent shares of foreign companies that trade on U.S. stock exchanges. They allow investors to buy and sell shares of foreign companies without having to go through the hassle of buying them directly on foreign exchanges.
ADRs offer several benefits to investors, including the ability to diversify their portfolios, gain exposure to foreign markets, and hedge against currency fluctuations. ADRs also provide investors with the convenience of trading on U.S. exchanges, which have longer trading hours and are more accessible to most investors.
