What are sponsored and unsponsored OTC ADRs?

They represent shares of foreign companies that do not qualify for a US exchange listing or choose not to list on the exchange. Investors can buy unsponsored OTC ADRs, which can be issued by more than one bank. Sponsored OTC ADRs are generally confined to being issued by one sponsoring bank.

How do I buy ADRs in trading?

Trading ADRs. To offer ADRs, U.S. banks simply purchase shares from the international company and reissue them, typically on U.S. exchanges. An ADR may represent the underlying shares on a one-for-one basis, or it may represent a fraction of a share or multiple shares.

What are ADR Securities and how do they work?

The underlying security is held by a U.S. financial institution, often by an overseas branch. ADR holders do not have to transact the trade in the foreign currency or worry about exchanging currency on the forex market. These securities are priced and traded in dollars and cleared through U.S. settlement systems.

How does the FDA regulate over-the-counter (OTC) drugs?

FDA reviews active ingredients and labeling of over 80 therapeutic classes of drugs Three-phase public rulemaking process resulting in the establishment of standards for an OTC therapeutic drug class Frequently Asked Questions on the Regulatory Process of Over-the-Counter (OTC) Drugs