ADR has two meanings: Alternative Dispute Resolution or American Depositary Receipt.

Alternative Dispute Resolution is a way to solve a contested matter without going into a court of law, equity or chancery, with all the expense, time and wait for trial that litigation exacts from all sides.

The typical ADR process is to the have the parties select from a list a mutually agreeable arbitrator, who will then conduct a hearing in which the rules of evidence are loose and pre-hearing discovery (an expensive, time consuming process) does not exist. The parties simply present their respective cases, and the arbitrator makes a ruling, usually in writing. If the parties agree to accept the arbitration decision as binding, the case is concluded and there is very little appellate review available. If the parties do not agree to make the ruling binding, there are legal procedures that vary by jurisdiction, to have a judge confirm the arbitration award and make it a final judgment.

ADR resolution is most commonly used to settle disputes between a stock brokerage firm and its customers or a credit card company and a card holder.

The OTHER ADR is an American Depositary Receipt. It is simply the way shares of a non-U.S. based company are traded on the New York Stock Exchange or the American Stock Exchange. Since that company's shares cannot be listed on the NYSE or ASE because of its foreign domicile and the fact that its stock trades in the currency of its own country on a non-US stock exchange, ADR's are issued that represent the U.S. Dollar equivalence of the company's shares. These will trade on the NYSE or the American Stock Exchange. Their price as converted into dollars will closely track the price of the stock on the foreign exchange where its stock is listed.

ADR's may not confer voting rights to holders, but they will often pay dividends equivalent to what the common shares earn.

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