Negotiable certificates, typically issued by a U.S.-resident company for securities (usually shares of stock) issued by a foreign corporation. The securities are backed by the foreign securities, which are held in a custodial account, either at the issuing bank or by an agent. The ADRs themselves may be held in U.S. or foreign banks. ADRs are considered foreign securities and, purchases and sales of ADRs, by U.S. residents are reportable on the TIC S report. (To avoid double counting, the custodial holdings of the foreign securities are not reportable.) ADR holdings are not reportable on the TIC B reports.