RE: Going forward15 Jun 2021 23:53
An ADR may represent the underlying shares on a one-for-one basis, a fraction of a share, or multiple shares of the underlying company.1? The depositary bank will set the ratio of U.S. ADRs per home-country share at a value that they feel will appeal to investors. If an ADR’s value is too high, it could deter some investors. Conversely, if it is too low, investors may think the underlying securities resemble riskier penny stocks.