A security that allows investors to buy and sell baskets of individual shares of stock in one transaction. The underlying shares are held on deposit at a U.S. bank. Holding company depositary receipts (HOLDRs) are a type of exchange-traded fund that allows investors to trade stocks in a specific industry, sector, or group. However, unlike exchange-traded funds (ETFs), HOLDRs represent beneficial ownership in the underlying stocks (HOLDRs holders enjoy voting rights and are entitled to dividend participation). HOLDRs were introduced by Merrill Lynch and are traded only on the American Stock Exchange.
February 21, 2023
