...
6) For next week.
Proceedings:
There are two broad categories of ADRs: Sponsored ADRs are created by depository banks working in collaboration with the issuer. Sponsored program ADRs trade on either a U.S. stock exchange or in the U.S. over-thecounter, or OTC, market.[7] Unsponsored ADRs, on the other hand, are unilaterally established by a depository bank without the issuer’s involvement — typically in response to or in anticipation of U.S. investor demand — and usually only trade OTC, as was the case for Toshiba.[8]
ADRs are also typically categorized into three levels by market participants, based on the extent to which the foreign company has accessed the U.S. market: Level 1 ADR programs — the only level for unsponsored ADRs — establish a trading presence on the OTC market, but may not be used to raise capital. Again, the Toshiba ADRs were Level 1 ADRs.[9] Level 2 ADR programs establish a trading presence for the sponsored ADRs on a national securities exchange, but cannot be used to raise capital.[10] Level 3 ADR programs are used both to establish a trading presence for the sponsored ADRs, and to raise capital for the foreign issuer.[11]