What is the difference between a common stock and a adr?

Common stock represents ownership in a company and gives shareholders voting rights and a claim on a portion of the company's assets and earnings. An American Depositary Receipt (ADR) is a financial instrument that represents shares of a foreign company traded on U.S. exchanges, allowing American investors to buy shares without dealing with foreign currencies. While common stock is directly linked to the company's equity, an ADR serves as a proxy, simplifying the investment process for U.S. investors in foreign firms.