How Investing in a Stock ADR Could Make You Wealthy
In my eyes, one of the best ways to send yourself into financial freedom is by investing in a stock ADR.
A stock ADR has the potential to lift profits to well over 200% in a relatively shot period of time.
I've done it and I've experience first hand how a stock ADR can transform your life.
I'd like to cover what a stock ADR is in detail as these seemingly under utilized investments generally go by under the radar.
The acronym ADR stands for American Depository Receipt.
The emergence of ADRs goes way back to the year 1927, where ADRs were introduced to let U.
S.
banks purchase shares from a foreign company and re-issue them as Depository Receipts and in turn, list them on the American Stock Exchanges.
The stock of many non-US companies trades on US exchanges through the use of ADRs.
Each stock ADR is issued by a U.
S.
depository bank and represents one or more shares or a fraction of the foreign share.
Currently, there are 4 major banks which issue ADRs: JP Morgan Credit Suisse Bank of NY Deutsche Bank If these names look familiar to you, you're right because aside from being major banks, this group of 4 are major IPO underwriters who together have brought companies public over the past 3 years that have just defied the market.
If an investor owns a stock ADR, he or she has the right to obtain the foreign stock it represents, but U.
S.
investors usually find it more convenient to own the ADR and hence the preference for ADRs.
A stock ADRs looks and feels pretty much like any other stock.
The stock ADR carries a price in US dollars, pays dividends in US dollars, and can be traded like the shares of US-based companies.
ADRs serve two broad purposes, on one hand, they provide a convenient mechanism for US investors to trade in shares of foreign companies and on the other hand it allows a foreign company to raise money from the US investors.
Knowing which type of ADR to invest in is crucial and if and when you get into the right one at the right time, the end result could be huge profits.
If you find a stock ADR in a hot sector, with generally large volume and is being sold by a major bank like Deutsche Bank, then you run the risk of capitalizing on this amazing trend of ADR profitability.
A stock ADR has the potential to lift profits to well over 200% in a relatively shot period of time.
I've done it and I've experience first hand how a stock ADR can transform your life.
I'd like to cover what a stock ADR is in detail as these seemingly under utilized investments generally go by under the radar.
The acronym ADR stands for American Depository Receipt.
The emergence of ADRs goes way back to the year 1927, where ADRs were introduced to let U.
S.
banks purchase shares from a foreign company and re-issue them as Depository Receipts and in turn, list them on the American Stock Exchanges.
The stock of many non-US companies trades on US exchanges through the use of ADRs.
Each stock ADR is issued by a U.
S.
depository bank and represents one or more shares or a fraction of the foreign share.
Currently, there are 4 major banks which issue ADRs: JP Morgan Credit Suisse Bank of NY Deutsche Bank If these names look familiar to you, you're right because aside from being major banks, this group of 4 are major IPO underwriters who together have brought companies public over the past 3 years that have just defied the market.
If an investor owns a stock ADR, he or she has the right to obtain the foreign stock it represents, but U.
S.
investors usually find it more convenient to own the ADR and hence the preference for ADRs.
A stock ADRs looks and feels pretty much like any other stock.
The stock ADR carries a price in US dollars, pays dividends in US dollars, and can be traded like the shares of US-based companies.
ADRs serve two broad purposes, on one hand, they provide a convenient mechanism for US investors to trade in shares of foreign companies and on the other hand it allows a foreign company to raise money from the US investors.
Knowing which type of ADR to invest in is crucial and if and when you get into the right one at the right time, the end result could be huge profits.
If you find a stock ADR in a hot sector, with generally large volume and is being sold by a major bank like Deutsche Bank, then you run the risk of capitalizing on this amazing trend of ADR profitability.