What is ADR?

ADR stands for "American Depositary Receipts." It refers to trading certificates issued on the U.S. securities market by companies outside the United States. ADRs allow U.S. investors to indirectly invest in non-U.S. companies, with rights and benefits similar to ordinary stocks. For example, when Warren Buffett purchased ADRs of TSMC (Taiwan Semiconductor Manufacturing Company), he was referring to the stock certificates of TSMC listed on the U.S. market. U.S. investors can invest in TSMC's stock using U.S. dollars without the need to open an account in Taiwan.