Introduced to the financial markets in 1927, an American depositary receipt (ADR) is a stock that trades in the United States and is denominated in US dollars but represents a specified number of shares in a foreign corporation. ADRs are also freely traded on European markets. ADRs can also be listed on major exchanges. It is a tool for raising capital on the US and international markets. ADRs can have different names depending on the requirements of a particular market.