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ADR

In the world of finance, there is a term that has gained popularity in recent times, known as ADR or American Depository Receipt. This instrument is traded in the US market and represents a fixed number of shares of a foreign company that is listed in its own country. ADRs are a preferred option for U.S. investors as it helps them avoid the complexities of dealing in foreign securities markets. Additionally, it also provides an avenue for foreign companies to raise funds in the US financial markets if they meet the strict regulatory requirements for disclosure and accounting.

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