The following is a characteristic of Americana depositary receipts (adds) adds are denominated and pay dividends in foreign currencies.
Investors must pay a currency conversion fee when purchasing ADRs. ADRs have a minimal purchase requirement. ADRs are provided by Correct Companies in the US to attract mutual funds.
A certificate issued by a U.S. bank that represents shares of foreign stock is known as an American depositary receipt. On American stock exchanges, these certificates are traded. ADRs are valued in US dollars, as are their dividends. ADRs offer American investors a simple, liquid option to purchase overseas stocks.
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