What Are American Depositary Receipts?

Trading or Investing?

American Depositary Receipts (ADRs) are stock in foreign companies that are traded in the U.S., just as you would buy and sell stock in America, and are valued in U.S. currency, thereby also paying money in U.S. dollars. American Depositary Receipts represent the acquisition of American Depository Shares, otherwise known as ADSs. Both ADR and ADS are often used interchangeably. What Are American Depositary Receipts? An ADS shows that you own a piece of equity in a company outside the U.S. Therefore, the certificate supplies individuals in the U.S. with an easy way to invest in overseas companies. Certificates are bought and sold in the same way that stock is traded on Wall Street. A slight variation of an American … Read more

The Advantages of Investing in Dividend Reinvestment Plans (DRIPs)

Dividend Reinvestment Plan

Note – The following blog post contains affiliate links. If you click and purchase a service recommended here, I receive a small compensation that helps keep Money Q&A running. All opinions expressed are my own. Dividends are an important factor in making any investment decision. They have a significant impact on the overall return of a particular investment. That’s why I love dividend reinvestment plans. While in the short term it may not seem like you could gain much from reinvesting small amounts of dividends, over the long-term you could be missing out on significant gains from the effect of compounding interest. One of the easiest ways to maximize investments in dividend stocks is through dividend reinvestment plans, or DRIP for short. There … Read more

Can You Earn Dividends In Forex Trading?

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Can you earn dividends forex trading? When people consider alternatives to ordinary stock trading, one option that commonly comes up is the currency trade. Generally referred to as the forex exchange, currency trading amounts to the literal buying and selling of world currencies (with other world currencies) with the aim of generating income from value fluctuations. Some view it as a risky market, and it’s important to give some thought to why. One analysis compared forex trading to gambling, suggesting that the high volume of trading and rapid movement of prices makes for an unpredictable environment. While another suggested the issue of overbought or sold currencies can become problematic. Can You Earn Dividends Forex Trading? However, it’s also worth noting … Read more

Three Reasons You Should Love Dividend Stocks

Three Reasons You Should Love Dividend Stocks

I love buying shares of dividend stocks that pay a dividend. Dividends are a great way for companies to give back their earnings to the company’s shareholders. In classic finance theory, a company’s stock share price is derived from the present value of its future income…its dividends. Paid to Wait for Dividend Stock Prices to Increase There have been instances of good companies that have been caught in a value trap, and their stock prices have tread water for years. Microsoft is a great example that immediately comes to mind. Microsoft continued to trade in a very narrow range for years before breaking out earlier this year. But, the one good thing for investors was that Microsoft has initiated a dividend … Read more