It’s Stock Investing 101: When you buy shares in a company, you are buying an actual piece of the business. That’s you, a part-owner. Except, it turns out, when it comes to foreign-listed companies. Rather than buying the shares on the other country’s stock exchange -- which is more than a little complex -- most times, U.S. based investors will use American Depositary Receipts, ADRs, and never think about the difference.
One Rule Breaker Investing listener did start thinking about the difference though, because he noticed he was getting charged a small, but regular, fee just to hold onto those ADRs, and he was wondering why. In this mailbag segment of the podcast, Motley Fool co-founder David Gardner and analyst Emily Flippen explain the reason.
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