Talk:American depositary receipt

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How are they backed?[edit]

Is ADR backed by existing shares(eg: the treasury shares) or new shares? If it is the latter, the company issuing ADR effectly get financing from foreign markets. Correct me if I am wrong. —Preceding unsigned comment added by 218.186.12.211 (talk) 15:04, 13 January 2009 (UTC)[reply]

I am reasonably certain that ADRs are backed by existing shares of the non-U.S. company. Good question, and I'll see if I can find a source to cite.--FeralOink (talk) 11:27, 3 April 2017 (UTC)[reply]

Price compared to foreign company share[edit]

The price of an ADR corresponds to the price of the foreign stock in its home market, adjusted for the ratio of ADRs to foreign company shares.

This is technically not accurate. There is often a very close correlation, but ADRs trade on their own and occassionally are a good percentage off when adjusted.

I will be expanding this article as I am very familiar with ADRs, since I work with them, as long as I get no objection. Skyler 19:05, Jul 28, 2004 (UTC)

Name change[edit]

It took a lot of work to change the name from "American Depositary Receipt" to "American depository receipt", and change everything that links here. Unfortunately, it all apparently needs to go back.

It's not true that "American depository receipt" is the "more common spelling". When I enter both spellings into Google, American depository receipt gets 40800 hits, and American Depositary Receipt gets 77600 hits.

Google isn't case sensitive, so it's only comparing the spelling difference, -ary vs. -ory. However, looking down both lists of hits, it is obvious that nearly all references to American Depositary (or Depository) Receipts capitalize all three letters, even if it isn't part of an article title. So even if -ary vs. -ory isn't worth fighting over, we really need to revert the capitalization anyway.

Furthermore, the preference for -ary is much more than Google's 2 to 1, because the articles that say -ory don't represent the same ADR experience as the articles that say -ary. The SEC link in your External Links says -ary. The other External Link doesn't mention ADR's at all, because it's about foreign currency exchange trading, not ADR's, and it should be replaced with a major ADR site like www.adr.com. The New York Stock Exchange glossary says -ary (although they are carrying a news story that says -ory). The big banks that actually handle ADR's for other companies, JP Morgan, Bank of New York, and Citigroup, have extensive sites on ADR's and always spell them -ary. (Merrill Lynch says -ory, but only twice - to describe issuing a new index based on ADR's, not ADR's themselves). The sites that say -ory are mostly reference sites that talk about ADR's, and sometimes companies with their own ADR, but not banks that handle them for others.

Finally, let's consider organizations that are aware of both spellings and see which spelling they chose. You can find the JP Morgan site www.adr.com and the Bank of New York site www.adrbny.com with either spelling in the Google search field (perhaps to snag prospective customers who can't spell) - but on the sites they only use -ary. According to [1], Depository is "common but incorrect; it's depositary". The only source that verifiably knows both spellings and uses -ory is Wikipedia - for now. Art LaPella 23:14, 12 October 2005 (UTC)[reply]

Addition. A foreign company has to file an equivalent of 10-Q under heading 6K. This heading can include all kinds of other information, so in order to find quarterly data, the best strategy is to browse through all 6Ks one-by-one starting with one filed immediately after the analysed quarter ended.

Retrieved from "http://en.wikipedia.org/wiki/Talk:SEC_filing"

Dollar-Denominated Negotiable Certificate[edit]

When trying to find out what ADR meant, in the disambiguate page I also found this entry: 'Dollar-Denominated Negotiable Certificate, represents ownership of shares in a non-U.S. company.' Does anyone think it should be merged in with this article (and its entry removed from the disambiguate page) or are they indeed different? Sparky132 00:09, 14 February 2007 (UTC)[reply]

A share or similar equity interest such as an ADR, that is issued by a corporation,and traded on a public exchange, is a security. As a security that is represented by a registered security certificate (not a bearer instrument), an ADR is governed under Article 8 - Investment Securities.

There is specific language in Article 8 explaining why negotiable certificates are not securities and as such, cannot be governed under Article 8. Negotiable certificates are governed under Article 3 instead.

I don't think we should have merged, but that was a long time ago. I checked on the vestigial link to the original Dollar-Denominated Negotiable Certificate. It is brief. It only contributed a few sentences to this article, which I can correct. I would like to remove the redirect, and entirely delete the Dollar-Denominated Negotiable Certificate stub. It is covered accurately by the current, broader-scoped Negotiable Instrument article. I need to figure out how to do that. For now, I will concentrate on revising the ADR article. I will also try to add enough RS inline sources to justify removing some of those tags.--FeralOink (talk) 11:21, 3 April 2017 (UTC)[reply]

Ping User:Dw122339, you just reverted my redirect removal. I explained my reasoning for doing so, specifically, that a dollar-denominated negotiable certificate is not an ADR, see immediately preceding text. I provided a similar explanation on Talk:Dollar-Denominated_Negotiable_Certificate. A dollar-denominated negotiable certificate is merely a dollar-denominated Negotiable Instrument. An ADR is an exchange-traded security. If want to discuss this further, let's do so. I stated my intention to remove the redirect right here, five days ago. There was no response. We can discuss this here if you want. I'll be back later today. Thank you.--FeralOink (talk) 16:22, 8 April 2017 (UTC)[reply]

Dislike "Case Study" section as seen August 27, 2014[edit]

Maybe it is an example, but I'm concerned it might serve more to promote that investment than to improve Wikipedia. Detailaware (talk) 17:43, 27 August 2014 (UTC)[reply]