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American Depositary Receipts (ADRs) are securities that trade on U.S. exchanges and represent ownership in foreign companies. They allow U.S. investors to buy and sell shares of foreign stocks more easily. ADRs can be purchased through brokers and may incur fees, including depositary fees, custody fees, and withdrawal fees. Understanding ADRs and their associated costs is important for investors looking to diversify their portfolios with international stocks.

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