Friday, January 11, 2019

What are American Depository Receipts?


Tangiers Investment Group, LLC, is a privately owned investment firm that provides funding to small and microcap public companies. Founded in 2006, Tangiers Investment Group, LLC, utilizes a variety of investment structures and specializes in over-the-counter (OTC) markets. 

OTC markets differ from formal financial exchanges in that they are decentralized and rely on a dealer network to facilitate trades. Some of the most popular OTC markets include the OTCQX Best Market, the OTCQB Venture Market, and the Pink Open Market. 

OTC markets trade a range of securities that include unlisted stocks and American depository receipts. Banks within the United States issue American depository receipts, which represent a certain number of shares in a foreign stock. American depository receipts also trade on United States’ financial exchanges. 

By trading these securities on an OTC exchange, underlying companies can avoid the additional regulatory requirements found on formal exchanges like the New York Stock Exchange.