Source: https://mochatrade.com/learn/glossary/adr

# ADR (American Depositary Receipt)
URL: https://mochatrade.com/learn/glossary/adr
Last modified: 2026-10-17

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](https://mochatrade.com/support/what-is-a-perpetual-contract-and-does-it-expire). When nobody stands behind the claim, the arbitrage [has nobody to run it](https://mochatrade.com/blog/what-happens-when-the-only-thing).

## Related terms

- ETF creation and redemption: https://mochatrade.com/learn/glossary/etf-creation-and-redemption
- Stock split (US): https://mochatrade.com/learn/glossary/stock-split
- Market capitalization: https://mochatrade.com/learn/glossary/market-capitalization
- Inverse ETF: https://mochatrade.com/learn/glossary/inverse-etf
- Real-world asset (RWA): https://mochatrade.com/learn/glossary/real-world-asset
- Fractional shares: https://mochatrade.com/learn/glossary/fractional-shares