ADR (American Depositary Receipt)

An ADR is a receipt a US bank issues for shares of a foreign company it holds abroad, so the stock trades in New York in dollars; Infosys and ICICI Bank trade this way. A bank holds the share, you hold a claim, and arbitrage keeps the two prices together, the same claim shape a contract on a price has. When nobody stands behind the claim, the arbitrage has nobody to run it.

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