What is an American depository?

American depository is a means for American investors who easily invest in foreign shares. The US deposit is traded on US exchanges in US dollars. However, its value depends on how the foreign shares that the US depository represents performs on a foreign exchange foreign exchange on which the shares are listed. He then creates a financial instrument, an American deposit that sells on the stock exchange listed in the US. Investors in the United States are then able to invest indirectly in this foreign company using US dollars. This allows the US investor to avoid a large number of administrative and labor costs that would arise if foreign stocks were kept directly. In the ThPs, the foreign company is willing to pay for the advantage of the exposure to a much larger market, the US market.

American bank that sets an American depositer also oftenHe cooperates with the second US bank. The bank that has launched the process is usually a large investment bank specializing in extensive investment. This investment bank will cooperate with a deposit bank that can specialize in the daily activities of the purchase and sale of each individual US deposit confirmation and the payment of any dividends. This arrangement allows the investment bank to specialize in what is best, and the depository bank focuses on its field of expertise. Both functions are required and even very large banks may not have or wish to have all the required expertise in the house.

American investors can use an American depository as an easy way to regionally divers their investment. It often happens that the economy in one region of the world can flourish, while another region is in the recession. By investing in a number of regions, the investor expects the total portfolio revenues to be more regular. American depository income also uThey can easily invest US investors in the world's best companies, regardless of the world market they trade.