Buying American Depositary Receipts (ADRs) is another way to share the benefits of investing internationally while conducting your buy and sell transactions just as you would if you were trading stock in domestic companies. Shares in hundreds of major companies based outside the U.S. are available as ADRs on U.S. markets. In fact, you may own ADRs without realizing it.
ADRs are receipts issued by a U.S. bank. They represent shares that the bank has purchased on a market outside the U.S. The bank handles all the currency and tax issues, just as a mutual fund does. But you choose the ADRs you want to buy, and decide when you want to sell. You don’t have those options with a mutual fund.
ADR price and performance information is reported regularly in daily stock tables, on the Web, or through your broker.
GDRs If a company wants to raise money
in more than one country, or in several countries
in addition to the one where it is headquartered,
it may issue Global Depositary Receipts (GDRs). They
resemble ADRs in most ways, but are often more
volatile,
especially if they’re issued
by young companies.
