Investments, tenth edition

  Depository Receipts 

 American Depository Receipts, or ADRs, are certificates traded in U.S. markets that repre-

sent ownership in shares of a foreign company. Each ADR may correspond to ownership of 

a fraction of a foreign share, one share, or several shares of the foreign corporation. ADRs 

were created to make it easier for foreign firms to satisfy U.S. security registration require-

ments. They are the most common way for U.S. investors to invest in and trade the shares 

of  foreign  corporations.    

   Stock Market Indexes 

 The daily performance of the Dow Jones Industrial Average is a staple portion of the 

 evening news report. Although the Dow is the best-known measure of the performance of 

the stock market, it is only one of several indicators. Other more broadly based indexes 

are computed and published daily. In addition, several indexes of bond market perfor-

mance are widely available. 

 The ever-increasing role of international trade and investments has made indexes of 

foreign financial markets part of the general news as well. Thus foreign stock exchange 

indexes such as the Nikkei Average of Tokyo and the Financial Times index of London are 

fast becoming household names.