Y

AAA

DEFINITION of 'Y'

A letter that appears on a Nasdaq stock symbol specifying that a particular stock is an American Depositary Receipt. An American Depositary Receipt (ADR) is a negotiable certificate that represents one or more shares of foreign stock or a fraction of a share. ADRs are traded on a U.S. exchange and are issued by a U.S. depositary bank. ADRs were introduced in response to the difficulties involved with buying shares in foreign corporations, including the challenges of trading at different prices and currency values. U.S. banks and brokerages can purchase bulk lots of shares from the foreign corporation, bundle the shares into groups and reissue them as ADRs on the New York Stock Exchange, American Stock Exchange or the Nasdaq.

INVESTOPEDIA EXPLAINS 'Y'

Nasdaq listed securities have four or five characters. When a fifth character appears, it identifies the issue as being one that is other than a single issue of common stock or capital stock. The Y identifies the stock as an American Depositary Receipt. These issues have distinct advantages in that they are a convenient and cost-effective method of buying shares in a foreign corporation. When an investor buys or sells ADRS, he or she is trading in the U.S. market and the trade will clear in U.S. dollars. Investors can invest internationally in a variety of ways including ADRs, mutual funds, exchange-traded funds, U.S.-traded foreign stocks or direct investments in foreign markets.

RELATED TERMS
  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Fifth-Letter Identifier

    An additional letter added onto four-letter ticker symbols to ...
  3. Direct Investment

    1. The purchase or acquisition of a controlling interest in a ...
  4. American Depositary Receipt - ADR

    A negotiable certificate issued by a U.S. bank representing a ...
  5. Negotiable Certificate Of Deposit ...

    A certificate of deposit with a minimum face value of $100,0 ...
  6. Stock Symbol

    A unique series of letters assigned to a security for trading ...
RELATED FAQS
  1. Is there a difference between ADR and ADS?

    American depositary receipts (ADRs) allow foreign equities to be traded on U.S. stock exchanges; in fact, this is how the ... Read Full Answer >>
  2. What are the fifth-letter identifiers on the Nasdaq?

    All of the companies traded on the Nasdaq have four-lettered tickers, which are representative of the actual company. For ... Read Full Answer >>
  3. What dividend yield is typical for companies in the industrial sector?

    The average dividend yield of the industrial goods sector is approximately 1.71%. The industrial goods sector is a group ... Read Full Answer >>
  4. Which REITs pay the highest dividends?

    A real estate investment trust (REIT) is a financial security that trades like a stock on major market exchanges. However, ... Read Full Answer >>
  5. What is the difference between an Equity REIT and a Mortgage REIT?

    There are several types of real estate investments trusts (REITS) that investors can purchase, including equity REITS and ... Read Full Answer >>
  6. How does a lack of demand affect financial markets?

    A lack of demand affects financial markets by leading to lower prices. The function of financial markets is to constantly ... Read Full Answer >>
Related Articles
  1. Economics

    American Depositary Receipt Basics

    Thanks to American depositary receipts, investors now have a world of investing opportunities to choose from.
  2. Investing Basics

    Introduction To American Depositary Receipts (ADRs)

    Investors should look beyond the confines of the U.S. borders to diversify and maximize returns. ADRs are one way to diversify your portfolio and help you achieve better returns when the U.S. ...
  3. Mutual Funds & ETFs

    Go International With Foreign Index Funds

    As global trade continues to expand and the world's economies grow, spice up your portfolio with these exciting opportunities.
  4. Mutual Funds & ETFs

    Getting Into International Investing

    Diversifying can mean not only investing in various asset classes but also venturing beyond domestic exchanges.
  5. Bonds & Fixed Income

    An Introduction To Depositary Receipts

    Learn about a security that allows you to invest in a foreign company through your local exchange.
  6. Professionals

    Understanding Series 6

    Upon successful completion of the Series 6, an individual will have the qualifications needed to sell open end mutual funds and variable annuities
  7. Economics

    When Global Economies Converge

    The Divergences in global economic look very much like an explanation for what happened last year, though market observers continue to tout about it.
  8. Fundamental Analysis

    How to Calculate a Turnover Ratio

    A turnover ratio measures a mutual fund’s level of trading activity in a given time period, usually a year.
  9. Investing

    Do Record Stock Highs Signal A Top?

    Despite higher rates, U.S. stocks have been posting new records in recent weeks, despite investor concerns about slowing U.S. corporate profit growth.
  10. Mutual Funds & ETFs

    Mutual Funds or ETFs: Which is Better?

    Trying to decide between a mutual fund or ETF? Here's what you need to know.

You May Also Like

Hot Definitions
  1. Fracking

    A slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations ...
  2. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  3. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  4. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  5. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  6. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
Trading Center