• American Depository Shares (ADAs) refer to shares of foreign companies held by US depository banks and can be traded in the US, including on major exchanges.

  • The terms “American Depositary Shares” and “American Depositary Receipts” are often used interchangeably.
  • ADSs give foreign companies access to a wider investor base and the world’s most complex financial market.
  • The main disadvantage of ADSs for investors is that they still carry foreign exchange risk despite being denominated in US dollars.