™An ADR may represent two foreign ordinary shares. Its price also reflects that ratio, exchange rates, depositary fees and the underlying company.
Stocks
American depositary receipt (ADR)
A U.S.-traded certificate representing shares of a foreign company.
Plain-English context
Put the definition to work.
The ADR ratio is not always one ordinary share. Currency exposure, depositary fees and shareholder rights need separate review.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — ADRs