CoachA depositary receipt is a security issued by a depositary bank that represents a fixed number (the ratio) of shares of a foreign company held in custody in the home market. It trades and settles in the host market’s currency and system; American depositary receipts (ADRs) are the US form. Receipts can be issued against a deposit of ordinary shares and cancelled for delivery of the shares, for a fee per receipt.
Quantitative Finance · Glossaire