An ADR is a US-listed certificate representing shares in a non-US company, making it easy for US and international investors to buy foreign stocks:
1.Each ADR represents 1 or more (or a fraction of) shares in the foreign company
2.Trades on US exchanges like the NYSE or NASDAQ
3.Dividends are paid in USD (converted from the local currency)
4.Examples: BABA (Alibaba), TCEHY (Tencent), NVO (Novo Nordisk), SAP, TM (Toyota)
5.ADR holders may face additional FX risk and have limited voting rights compared to domestic shareholders
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