Word of the Day
An American Depository Receipt represents ownership in the shares of a non-US company that trades in the financial markets. ADRs allow US investors to buy shares in foreign companies with engaging in the risk and expense that come with cross border and cross currency transactions. In the case of companies incorporated in the United Kingdom, creation of ADRs attracts a 1.5% stamp duty reserve tax (SDRT) charge by the UK government. The first ADR was created by JP Morgan in 1927 for the retailer Selfridges.