A share of a security that is secured by non-U.S. shares held on deposit at a U.S. bank. This share is issued under a deposit agreement whose underlying is an ordinary share that trades in the issuer’s local market. The term American depositary share (ADS) is used interchangeably with American depositary receipt (ADR). However, the ADS is the actual share that is traded in the market, while the ADR is the certificate that evidences the number of shares (ADSs) it represents. Each ADR represents one or more shares or a fraction of a share of a foreign stock. An ADR allows its holder to obtain the underlying foreign stock.