American Depositary Share - ADS

When a foreign company wants to trade its shares on the U.S. stock market, one vehicle it can use is called an "American Depositary Share."

The formal process has a lot of twists and turns, but the fundamental set up involves the foreign firm putting some of its stock in a bank (it's deposited there, like you might deposit a paycheck into your checking account...hence the "depositary" part of the term). Then the bank issues the ADS, which are denominated in dollars and can trade on a U.S. exchange.