A security issued by a financial institution that represents an economic interest in a foreign company. The financial institution holds the foreign company’s shares in custody and issues depositary receipts against the shares held. These depositary receipts trade like common stock on the local stock exchange.

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1. A security issued by a financial institution that represents an economic interest in a foreign company. The financial institution holds the foreign company’s shares in custody and issues depositary receipts against the shares held. These depositary receipts trade like common stock on the local stock exchange.